Debiprosad Pal, J. - (1.) The petitioners in this application have challenged a notice issued by Assistant Superintendent, Bihar State Religious Trust calling upon the petitioner to file statement of accounts for the years 1967-68, and 1968-69 and the budget for 1969-70. By the said notice the petitioners were asked to file returns for the financial years from 1951-52 to 1958-59. The petitioners are the Trustees together with respondent Nos. 3 and 4 in respect of a Trust created by an Indenture of Trust dated 11 March, 1939. The Trust is known as Smt. Charushila Trust Estate. The Bihar Hindu Trust Act, 1950 (hereinafter referred to as the Act) applies to the said Trust and the impugned notice has been issued under the provision of the Act.
(2.) The only contention raised in this petition is that the Act does not and cannot authorise the levy, assessment or collection of any imposition upon the usufruct or income of any immovable properties situated outside the State of Bihar. The imposition is made under section 70 of the Act which requires the Trustees of every religious Trust to which the Act applies to pay to the Board constituted under the Act, such fees, not exceeding financial year, as the Board may with the previous sanction of the State Government determine. Such foes are to be paid for the purpose of defraying the expenses incurred or to be incurred in the administration of the Act. The learned Counsel for the petitioners contends that in so far as this section authorises the State Government to impose a fee at a certain percentage of the net income of the Trust in respect of the properties situated outside the State of Bihar, the law has an extra-territorial operation and hence beyond the legislative competence of the State Legislature. In view of the decision of the Supreme Court in case of State of Bihar v. Smt. Charushila Dasi, AIR 1959 SC 1002 , it is not open to the petitioners to raise such contention. The Supreme Court in the aforesaid decision held that section 3 of the Act has made the Act applicable to all Public Religious Trusts which are situated in the State of Bihar and any part of the properties of which is situated in that State. As this is the true meaning of section 3 of the Act none of the provisions of the Act have extraterritorial application or are the beyond the competence and power of the Bihar Legislature. Undoubtedly the Bihar Legislature has power to legislate in respect of, "charities, charitable institutions, charitable and religious endowments and religious institutions" situated in the State of Bihar and in so legislating it has power to affect trust properties which may be situated out of Bihar. In the said case also the proceedings were taken under sections 59 and 70 of the Act. In the case of Mohan Moti Das and Ors. v. State of Bihar and Anr., AIR 1959 SC 942 , validity of section 70 of the Act was challenged on the ground that the said section imposes and unauthorised tax. This argument also was repelled by the Supreme Court and it was held that the contribution levied was a fee and not a tax.
(3.) In view of the aforesaid decisions of the Supreme Court it is no longer open to the petitioners to raise such contention which is now concluded by the judgment of the Supreme Court.;