the borrower had employed this sum as part of his capital in the firm.
the high companyrt before which the tribunal at the instance of the revenue stated a case and referred two questions of law for opinion upheld the view that had companymended itself to the tribunal and answered the questions against the revenue.
reliance was also placed on some extracts of the quran said to relate to this transaction.
the claim for the number inclusion of this asset in the wealth of the assessee was sought to be supported by the declaration dated 26.3.1965 furnished by the debtor that the sum was received by him without any obligation and without any rate of interest and without any companysideration.
from the judgment and order dated 30.8.1974 of the high court of madhya pradesh in miscellaneous civil case number 352 of 1971.
both the wealth tax officer and the appellate assistant commissioner in the appeal found it difficult to accept this claim and accordingly brought this sum of rs.400000 to tax on the respective valuation dates.
the matters arise out of the proceedings companycerning the assessment to wealth tax of the respondent abdul hussain mulla mohammad ali the assessee for the four assessment years 1957 58 to 1960 61.
whether on the facts and in the circumstances of the case the tribunal was justified in accepting that the amount of rs.4 lakhs was in the nature of quaraza e hasana particularly when rs.121500 out of rs.4 lakhs has been repaid?
in regard to the subsidiary or supporting reasons for the acceptance by the tribunal to hold that there was numberdebt which companyld be said to be due and owing to the assessee the learned companynsel invited our attention to the following reasoning of the tribunal faizullabhai in a declaration dated 26.3.1965 has stated that this amount was received by him without any obligation and without any rate of interest and without any companysideration.
a. ramachandran vinek gambhir sanjay sareen and k. gambhir for the respondents.
civil appellate jurisdiction civil appeal number.
in the revised return filed by him the assessee however sought to have the value of that loan excluded from his wealth on the claim that this loan was what was knumbern to muslim law as quaraza e hasana a debt of good faith and goodwill carrying with it numberlegal obligation on the part of the debtor to repay and correspondingly numberright on the part of the assessee to expect much less enforce a repayment.
both the assessee and the said faizullabhai mandlawala were partners of a firm carrying on business under the name and style rising sun flour oil mills at ujjain.
b. ahuja ms.
however the income tax appellate tribunal indore bench accepting the assessees appeals held that the loan partook of the character of quaraza e hasana with its special incidents as knumbern to muslim law that the transaction was one of good faith and goodwill and lacked the companycomitants of a legally enforceable claim for repayment and that therefore the amount was number a debt due to the assessee.
740 to 743 of 1975.
the judgment of the companyrt was delivered by venkatachaliah j. these appeals by special leave by the companymissioner of wealth tax bhopal arise out of the opinion rendered by the high companyrt of madhya pradesh bhopal in fourconsolidated wealth tax references under section 27 1 of the wealth tax act 1957.
in the original returns for the assessment year 1957 58 relevant to the valuation date 31.3.1957 the assessee filed a return of net wealth of rs.857910 which included a sum of rs.400000 representing the principal value of the loan advanced by the assessee to a certain faizullabhai mandlawala sidhpur.
a. subhashini and k.c.
dua for the appellant.
they raise a short but interesting question touching the incidents of what is described as the quaraza e hasana said to be a transaction knumbern in and peculiar to the personal law of the muslims.
