- (1.) This appeal with special leave against the judgment of the High Court of Judicature at Allahabad raises a question of the interpretation of S. 11 (1) of the U. P. Agricultural Income-tax. Act 1948, Act III of 1949 (hereinafter referred to as "the Act").
(2.) The appellants are the trustees of the Estate settled on trust under the last will and testament dated 17th May, 1917, of one J. J. Holdsworth which inter alia comprised of a certain zamindari Estate known as the lehra Estate situate in the District of Gorakhapur, Uttar Pradesh.
(3.) The clauses of the will so far as they are relevant for the purpose of this appeal provided that the trustees were to take possession of all real property in the United Provinces of Agra and Oudh and elsewhere in British India (including the houses at Lehra and Gorakhapur and the grounds thereof) and all live and dead stock in or about his estate in British India or any buildings thereon and the contents of any houses or stabling in British India belonging to him (which was called his estate) and manage the same in all respects and in such manner as they shall deem most advantageous and with all the powers of absolute owners. The trustees were to stand possesses of the net rents and profits of the settled estate after payment of the Government Land Revenue Tax, and of all management expenses, upon trust to pay thereout certain annuities to 12 annuitants therein mentioned. If the net rents and profits of the said Estate were less than seventy thousand rupees in any year or if the said Estate or any portion thereof shall be sold at less than twenty years purchase of the net rent of seventy thousand rupees or an equivalent proportion thereof in respect of the proportion so sold, the annuities bequeathed as above and for the time being payable except annuities Nos. (1), (2) and (3) were to abate proportionately and no such annuitant was entitled to have the deficiency of his or her annuity made good out of the rents and profits of the said estate in respect of any subsequent year. If there was no survivor alive then it was to go to William Orlando Holdsworth, the son of the testator. Seven of the said annuitants died and at the relevant period the following annuities were payable: (i) Mrs. J. C. Holdsworth 2,500/- (ii) Mr. W. O. Holdsworth 1,000/- (iii) Miss Lucy Marion Holdsworth 50/- (iv) Lt. Col. L.R.J.C. Wilkinson 500/- (v) Mr. Horace Claud Holdsworth 400/- ;