A Division Bench of the Andhra Pradesh High Court, Hydera bad, companysisting of Seshachelapati and Venkatesam, JJ, on a companysideration of the relevant provisions of the deed and the Act, came to the companyclusion that on the terms of S. 4 3 i of the Act, the Trust was number entitled to the exemption.
The Trustees claimed exemption under S. 4 3 ii of the Act.
Two of the said objects were for religious and charitable purposes within the taxable territories and the other two for purposes outside the taxable territories.
On and after the death of the Settlor the Trustees shall hold the accumulated companypus of the Trust Fund upon trust to spend the income thereof for any one or more of the following religious or charitable objects in such shares and proportions and in such manner as the Trustees shall in their absolute discretion deem proper.
Appeal by special leave from the judgment and order dated September 14, 1962 of the Andhra Pradesh High Court in Case Referred No.
Narsaraju, Anwarullah Pasha, J. B. Dadachanji, O. C. Mathur and Ravinder Narain, for the appellant.
Under the Trust deed three trustees were appointed, including the settlor.
Hence the appeals.
At the instance of the assessee, the following question was referred to the High Court under s. 66 1 of the Act Whether the income arising from property settled upon trust under the deed of settlement, dated 14 9 1950, or any part thereof is exempt from tax under Section 4 3 of the Indian Income tax Act, 1922.
40 lakhs for implementing the objects described in the Trust deed.
It is important to numberice that under the deed numberpower was companyferred on the trustees during the life time of the settlor to set apart and allocate the accumulated income or a part of it from the Trust properties for any one or more of the objects mentioned therein that companyld be done only by the Trustees after the death of the settlor.
It is hereby further agreed and declared that in all matters wherein the Trustees have a discretionary power the votes of the majority of the Trustees for the time being voting in the matter shall prevail and be binding on the minority as well as on those Trustees who may number have voted and if the Trustees shall be equally divided in opinion the matter shall during the life time of the Settlor be decided according to the opinion of the Settlor and after his death according to the opinion of the Trustee most senior in age for the time being.
For the assessment years 1952 53 and 1953 54 the Trustees were assessed to income tax on the income during the relevant previous years arising from the said Trust property.
The Income tax Officer, on appeal the Appellate Assistant Commissioner, and on further appeals the Income tax Appellate Tribunal, Hyderabad, companycurrently held that the assessee was number entitled to the exemption under the said section.
The said settlor is still alive.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
491, 492 of 1964.
Clause 4.
Macca, Madina Najaf Karbala, Kazamain, Sirraman Raa and Mashad in Iran and Baghdad and Basra.
4 of 1961.
3 86 For annual religious offerings to the sacred places of the Muslims outside India, in Hedjaz and Iraq, viz.,
The relevant facts may be briefly stated.
For the annual expenditure during the mourning period of Moharram and Safer and also during other religious months, when different kinds of ceremonies, religious discourses Taqreers Id Tagreebs, etc.
V. Viswanatha Sastri, N. D. Karkhanis, R. H. Dhebar and N. Sachthey, for the respondent.
For the up keep of the sacred buildings companystructed in the life time of the Settlor such as, masjids mosques , Azakhana mourning house, built to companymemorate the name of His Exalted Highnesss late mother , two Askurkhanas where the Alam sits inside the City palace during Moharram and Ramzan , and the Maqbaras Tombs and particularly mentioned in the Second schedule hereunder written.
By an indenture dated September 14, 1950, H.E.H. the Nizam of Hyderabad created a trust known as H.E.H. the Nizams Religious Endowment Trust, hereinafter referred to as the Trust, under which he settled certain securities of the face value of Rs.
For help either in lump sum or by way of monthly allowances, to the Khuddam or the servants who are looking after the sacred Shrines, and also by way of charity to pious people residing at these holy places.
are performed, including the religious offerings to the sacred Shrines at Ajmer and Gulbarga.
