CHATTERJEE,J. - (1.) THIS is a reference at the instance of the IT authorities for the opinion of this Court on one question which is formulated in the following terms :- "Whether on the facts and in the circumstances of the case the income received under the deed of dedication (Arpannama) dt. the 31st March, 1922, is chargeable at the maximum rate under the first proviso to S. 41 (1) of the IT Act." Sri Sital Chandra Banerji, a pious Hindu governed by the Dayabhaga School of Hindu law, dedicated very valuable properties to two idols Sri Sri Iswar Sita, and Sri Sri Iswar Ram by an Arpannama dt. 31st March, 1922. The ITO assessed the assessee under S. 41(1) of the IT Act and assessed the deities as an association of persons at the maximum rate on the ground that the shares of the beneficiaries were indeterminate.
(2.) AN appeal was preferred to the AAC who set aside the assessment and held that the shares of the deities were determinate and the entire income was equally divisible between the two deities. Under the Arpannama the settlor dedicated to the said deities Sri Sri Iswar Sita Ram Jew the properties mentioned in the schedule and made them debutter, and from that day the aforesaid God and Goddess became vested with rights therein, and the settlor became wholly divested of all rights in the said properties.
(3.) THERE were elaborate provisions for the appointment of shebaits, their qualifications and their duties, responsibilities and powers. The settlor set up a governing body and made provisions with regard to Dev Seba and periodical worship and other incidental pious and charitable uses. "After spending moneys sufficiently according to the discretion of the shebait for the Dev Seba as fixed and the regular worship of the deities and the charities connected therewith", the surplus would be spent for Athithishala and other charitable objects and religious works mentioned therein.;