Law: Wealth Tax Act, 1957

Section: 27

Law: Wealth Tax Act, 1957

Section: 27

JUDGMENT Mitter, J.-The question referred to this court under section 27 of the Wealth-tax Act is: "Whether on the facts and circumstances stated the right of the assessee to receive a specified share of the net income from the wakf estate is an asset the capitalized value of which is assessable to wealth-tax? " The facts are very short: One Golam Hossain Cassim Ariff, a Mohammedan, created a wakf on November 19, 1928, of certain lands, hereditaments and premises whereby he appointed himself the sole mutawalli of the wakf property during his life and after his death .his sons and his widow were to be mutawallis jointly. The mutawalli or mutawallis were to retain a proper establishment to look after the wakf property and keep proper accounts thereof. After payment of all necessary outgoings including, revenue, taxes, repair charges, etc., the mutawallis were to divide the income of the wakf property in the manner stated, that is to say, pay the wakif Rs. 700 per month, Ibrahim Golam Hossain Ariff Rs. 600 per month for his life, a similar sum to each of his other sons and the sum of Rs. 400 per month to his wife. On the death of any of the beneficiaries the money payable to him was to be paid to and distributed amongst persons entitled to the same according to the Mohammedan law as heirs to the beneficiaries so dying. There was a deed of rectification of the wakf executed on July 5, 1930, by which the payment to the wakif and the first mutawalli as also to the other beneficiaries was to be made in a different manner. The wakif was to get for the term of his life l/5th of the net income of the property by monthly installments, his sons were each to get l/6th of the net income for their lives respectively, and the wife was to get 1/10th of the net income. The assessee failed to convince the revenue authorities that wealth-tax could not be levied in respect of his right to receive a definite share of the net income from the wakf property. Before us it was contended: (1)That such right was not property which could be described as an "asset" for the purpose of the Act. (2)If the above contention was not accepted the asset in this case was excluded from the operation…

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