Tulzapurkar, J. - (1.) There is no substance in these appeals which have been preferred by the two assessees, Haji Abdul Hameed and Haji Abdul Shakoor, respectively who have been denied the earned income relief by the taxing authorities as well as by the Tribunal and the High Court.
(2.) The dispute centres round the income derived by the two assessees as beneficiaries under the deed of Wakf executed by their grandfather in 1942; the subject-matter of the wakf was bidi business and admittedly for the accounting periods relevant to the Assessment Years, 1957-58 and 1960-61 it was Hameed (the beneficiary) who carried on the business, as sole Mutawalli and in these two Assessment Years after the income was earned by the wakf the same was distributed between the two brothers as beneficiaries under the deed and it was in respect of such receipt in the hands of two assessees that earned income relief was claimed under S. 2(6AA)(b) or (c) of the Indian Income Tax Act, 1922.
(3.) Admittedly, the assessment in the sense of levying of the tax on the computed income proceeded under S. 41(2) and not under S. 41(1) of the Income Tax Act, 1922 and the earned income relief was claimed either under Cl. (b) or clause (c) of S. 2(6AA). So far as the receipt of income in the hands of Haji Abdul Shakoor is concerned since the business was not carried on by him nor was the income derived by him from his personal exertions clearly he was not entitled to earned income relief either under Cl. (b) or Cl. (c) and the High Court was right in declining that relief to him. Counsel for the appellants has also not pressed his case for earned income relief before us but counsel did press the case of Haji Abdul Hameed under Cl. (b). However, in our view the High Court was right in declining that relief to him also, for, valid reasons mentioned in the majority decision of the High Court.;