Commissioner Of Income Tax vs Hamdard Dawakhana (Wakf).
1992 Latest Caselaw 292 Del

JUDGMENT

B.N. Kirpal, J.

1. The Income-tax Tribunal has referred the following two questions to this Court :

"(1) Whether, on the facts and circumstances of the case, and on the true construction of the Wakf Deed dt. 25th August, 1948 read with the declaration dt. 6th September, 1950, the whole or any part of the one-eighth of the annual income of the Wakf transferred to the reserve fund was exempt from tax under s. 11(1)(a) or (b) with s. 2(15) of the IT Act, 1961 in respect of the asst. yrs. 1965-66 to 1970-71 ?

(2) Whether on the facts and in the circumstances of the case, 49/64th share of the income of Wakf allocated to Quami account was exempt from tax under provisions of s. 11(1)(a) or (b) read with s. 2(15) of the IT Act, 1961 for the asst. yrs. 1965-66, 1966-67, 1967-68, 1968-69, 1969-70 and 1970-71 ?"

2. The reference has been made in respect of asst. yrs. 1965-66 to 1970-71. It is not necessary to give the facts in any great detail because the Tribunal had occasion to deal with identical questions in respect of earlier years, viz., asst. yrs. 1962-63 to 1964-65. It is following its earlier decision in favor of the assessed that, in these years also, the case has to be decided in favor of the assessed.

3. In respect of the earlier asst. yrs. 1962-63 to 1964-65, on question of law being referred, a Division Bench of this Court in the case of Addl. CIT vs. Hamdard (Wakf) (1986) 157 ITR 639 (Del) held the two questions of law in favor of the assessed after it came to the conclusion that it was a charitable trust entitled to the benefit under the Act.

4. In view of the fact that the facts in the present case are identical to the aforesaid decision, the questions of law now referred are answered in the affirmative and in favor of the assessed.

5. There will be no order as to costs.