In the view of the Income tax Officer, the trust was number a, public religious trust and the income derived from properties number used for agriculture was number exempt from liability to pay tax in the hands of the appellant.
In the assessees income determined by the Income Tax Officer for the assessment year 1950 51, Rs.
6,000 were included as income from number agricultural properties of the trust.
The High Court of Judicature at Patna thereafter at the instance of the appellant directed the Income tax Appellate Tribunal to submit a statement of the case on five questions set out in the order.
The High Court agreed with the Tribunal that the remuneration was received by the appellant under a companytract, and it was number agricultural income, merely because the source of the money was agricultural income.
Appeal from the judgment and order dated April 24, 1957, of the Patna High Court in Misc.
In appeal to the Income tax Appellate Tribunal, Patna Bench, Patna, the order passed by the Appellate Assistant Commissioner in so far as it related to remuneration received by the appellant was affirmed.
10,208 and from the aggregate of these two amounts after deducting 15 as trustees remuneration, the balance of the income estimated at Rs.
In appeal against the order of assessment, the Appellate Assistant Commissioner held that the income companying to the hands of the appellant from the trust properties was number taxable as private income of the appellant, but in his view, the remuneration amounting to Rs.
57 of 1955.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
357 of 1958.
1,81,717 and the net rental of the properties described in Schedule C was estimated at Rs.
Judicial Case No.
The net income of all the lands set out in Schedule A. after providing for the expenses of management and the taxes payable thereon was estimated at Rs.
1,63,136 4 0 was to be utilised for the objects of the trust.
21,274 companyputed at the rate of 15 on the net income of the trust properties in the year in question number being agricultural income in the appellants hands was liable to be taxed.
N. Rajagopal Sastri and R. H. Dhebar, for the respondent.
6 And whereas the declarant feels that a Declaration of Trust should be made whereby the income of a part of the Raj properties may be earmarked and specially devoted to the maintenance of the aforesaid institutions as also the Declarant may as hitherto treat himself and be treated by others as a legal Trustee of the said institutions and the properties out of the income of which the said maintenance is being and will be provided for.
V. Viswanatha Sastri and I. N. Shroff, for the appellant.
The material terms of the deed of trust are cl.
The Judgment of the Court was delivered by SHAH J. The appellant executed a deed of trust settling certain lands described in schedule A and the rents of lands described in schedule C for the maintenance of certain temples and Thakoorbaries.
8 The declarant further declares that in all lands number held by him in the aforesaid properties as Bakast or proprietors private lands as in the schedule C which are in direct khas cultivation of the Declarant shall henceforth be or companytinue to be his tenancy lands for which the Declarant shall pay the rental as numbered against such lands, annually to the trustee for the use and benefit of the aforesaid institutions and the rights of the Declarant in them shall be those of a rayat under the Bihar Tenancy Act.
October 25.
7 The declarant declares that henceforth he holds and will hold the properties detailed at the foot thereof in Schedule A in trust for religious purposes of maintaining the religious institutions more fully described in Schedule B annexed here to.
