HAJI ABDUL HAMID Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, ' D ' Bench, Allahabad, has referred the following two questions for the opinion of this court :

(2.) THE assessment year in question is the year 1961-62. THE dispute centres round the income derived by the assessee as a beneficiary from a waqf. This waqf was created by the assessee's grandfather, Haji Lal Mohammad, by a deed dated March 14, 1942. Under this deed, the assessee and his brother, Haji Abdul Shakoor, were the beneficiaries and the properties forming the subject-matter of the waqf was the biri business, styled as " Haji Lal Mohammad Biri Works ". Originally, Haji Lal Mohammad and his wife were the mutawallis; but later they, by deed dated February 13, 1947, surrendered their rights, and Haji Abdul Hamid became the sole mutawalli, and continued as such during the relevant period. As both Haji Abdul Shakoor and Haji Abdul Hamid had half share each in the income from the business covered by the waqf, they were assessed as beneficiaries of the waqf business. In the assessment year in question, the income derived by the waqf was computed; but, no tax was assessed thereon. THE income from the waqf was included half and half in the individual assessment of the two brothers, Haji Abdul Hamid and Haji Abdul Shakoor. THE assessee objected to the inclusion of this income on two grounds. Firstly, that as the income had been assessed in the hands of the waqf, it could not be included in the assessment of the assessee. THE other ground was that as the income was earned income, he was entitled to " earned income relief ". Both these contentions have been rejected by the assessing authorities.

(3.) COMING now to the first question. As the dispute relates to " earned income relief " on the share of income received by the assessee from the business it is necessary in this connection to refer to Section 15A and Section 2(6AA) of the Indian I.T. Act, 1922. Section 15A tuns thus :