MOHD ISHAQ Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is a reference under Section 66 (1), Income-tax Act, in which the following questions have been referred to us :

(2.) Nadir Ali Shah and Muhammad Ishaq of Meerut City executed a registered deed of waqf on 28-10-1941. Under the deed of waqf, the income of the property shown in the schedule was dedicated for the benefit of the wife and children of the executants. The Income-tax Officer held that the income, which arose from the assets transferred by this deed of waqf for the benefit of the wife and minor children of the executants of the deed, was liable to be assessed as the income of the executants themselves under Section 16 (3) (b), Income-tax Act and consequently assessed as such. The appeals by the assessee to the Appellate Assistant Commissioner of Income-tax and the Income-tax Appellate Tribunal failed. Consequently, on his application the above questions were referred to this Court by the Income-tax Appellate Tribunal Allahabad Bench.

(3.) We take up the second question first as the answer to the first question depends on the answer that is given to the remaining three questions. The Income-tax Appellate Tribunal, in their appellate order, held that