HAJI ABDUL HAMID Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following questions have been referred for the opinion of thiscourt by the Appellate Tribunal under Section 256(1) of the I.T. Act, hereinafter referred to as the Act.

(2.) THE assessee is the Mutawalli of a wakf, Haji Lal Mohd. Bin Works and also one of the beneficiaries of the wakf. In the assessment year 1970-71, the disclosed income from the wakf was stated to be Rs. 1,51,534 after deducting a sum of Rs. 8,700 payable to the other beneficiary. In the assessment-proceeding it was held that the assessee was the real owner of the business carried on in the name of the wakf. Consequently, the income of the wakf was treated as the assessee's income, subject to a deduction of Rs. 8,700 payable to the other beneficiary, Haji Abdul Shakoor. THE ITO at Rs. 8,45,320 (sic). THE assessee preferred an appeal and disputed the rejection of the book results and the application of the proviso to Section 145(1) of the Act. THE AAC held that the account had been entirely manipulated and effective verification of the actual consumption on the basis of raw material was not possible. It was further held that the assessee's accounts were liable to be rejected both in terms of Sub-sections (1) and (2) of Section 145 of the Act. He confirmed the assessment order for the other two years 1962-63 and 1970-71. He passed separate orders and confirmed the assessments.

(3.) IN the case of CIT v. Puthiya Ponmanichintakam Waqf [1962] 44 ITR 172, their Lordships of the Supreme Court were considering the position of a trustee under a waqf with reference to Section 41 of the Act. Their Lordships observed (p. 1004 of 122 ITR):