Law:

Section:

Section 22 of the Income-tax Act, 1961 (Corresponding to section 9 of the Indian Income-tax Act, 1922) - Income from house property - Chargeable as - Assessment years 1952-53 to 1956-57 - One 'K' and her son, created a debutter endowment in respect of their ancestral dwelling house in which ancestral family deity was installed - 'P' was appointed as shebait to estate and he was to perform duty and periodical rites, functions, etc. - Whether income from aforesaid property could not be assessed in hands of 'P' under section 9 of 1922 Act by describing him either as shebait or trustee for deities - Held, yes FACTS By an arpannamah one 'K' and her son, created a debutter endowment in respect of their family dwelling house in which the ancestral family deity was installed. For the assessment years 1952-53, 1953-54 and 1954-55, the assessment was made in respect of the properties covered by the deed on 'P', shebait to the estate and for the next two assessment years, namely, 1955-56 and 1956-57, the same assessee was described as trustee to the debutter estate. The income from the debutter estate was assessed under two heads: (1) house property under section 9 of 1922 Act (2) other sources under section 12 of the 1922 Act. On appeal, the Tribunal found that no trust in the technical sense of the term had been created by the arpannamah and that there was no conveyance in favour of any trustee. Nor in the opinion of the Tribunal was there any formal conveyance of the property in favour of the idols. According to the Tribunal what the settlers had unequivocally done was to extinguish their own interests in the property and dedicate the same for certain pious and benevolent purposes to be carried out by said 'P' and his successors. In these circumstances, the Tribunal held that, despite the absence of a formal conveyance in their favour, the idols were the legal owners of the property dedicated to them and the correct status of the assessee was that of a shebait or a manager, who had no beneficial interest in the property. On this view, the Tribunal held that the assessee was not liable to be taxed under section 9 of 1922 Act and that the assessments made in respect of…

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