COMMISSIONER OF WEALTH TAX Vs. BEGUM HASHMATBI

JUDGEMENT

(1.) THIS is a case stated by the Appellate Tribunal under Section 27(1) of the Wealth-tax Act, 1957, referring for our answer the following question of law :

(2.) THE facts and circumstances leading up to this reference are these: THE assessee, Begum Hashmatbi, was assessed to wealth-tax for the year 1957-58 by the Wealth-tax Officer on 30th November, 1961. During the assessment proceedings the assessee contended that the properties in her possession were the subject-matter of wakf and were not liable to be included in her net wealth. This plea was based on a document executed by the assessee and her husband, Lt. Col. Khan Bahadur Ahmed Baksh, on 14th October, 1953. THE husband had died some time in 1955. THE Wealth-tax Officer construed the document as a will and held that the wakf was to come into existence after the death of the assessee and, therefore, the properties covered by the will were liable to be included in the net wealth of the assessee. THE assessee went up in appeal to the Appellate Assistant Commissioner, who agreeing with the view taken by the Wealth-tax Officer dismissed the appeal on 27th November, 1962. THE assessee then preferred a second appeal to the Appellate Tribunal, which was allowed in her favour on 20th June, 1964. THE Tribunal held that the document created a wakf and the properties became trust properties and as the assessee ceased to be their owner they could not be included in her net wealth. THE Commissioner of Wealth-tax then applied for a reference under Section 27(1) and the Tribunal referred to us the question of law that we have already set out.

(3.) THE first clause of the document declares that "we give in wakf after our demise all our movable and immovable property". It also contains a list of the religious and charitable purposes in respect of which the wakf is to operate, most important of them being the establishment of a Girls' Intermediate College in the name of Begum Ahmed Baksh. Clause (2) describes the immovable properties which consist of two buildings, namely, "Allah Kothi" and "Ram Nam Kothi."