MANAGING TRUSTEES NAGORE DURGAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred under section 66 (1) of the Act for the decision of this court is "whether the provisions of section 41 can be said to apply to the assessee in this case."

(2.) THE history of this trust is set out in some detail in the decision in the Trustees, Nagore Durgah v. Commissioner of Income-tax. Reference will be made to this decision in due course.

(3.) THE principal contention that was advanced on behalf of the assessee was that the appointment or election of the managing trustees in the present case was in pursuance of this cause of the decree. That being so, this properly a case, so its was claimed, where it can be said that this appointment has been made under the order of court. Before proceedings to construe this clause and deciding whether this provision would bring the matter within the scope of section 41 of the Act, reference may also be made to certain other clauses of the scheme, which set out the functions of the board of trustees and the managing trustee in particular. Under clause 43 of the scheme, the managing trustee is entitled to receive all gifts intended for the Durgah. He has to keep a regular account of them. Clause 44 of the scheme as finally settled provides :