COMMISSIONER OF INCOME TAX Vs. UMA MAHESHWARI

JUDGEMENT

(1.) This is a reference by the Income Tax Appellate Tribunal under Section 256(1) of the Income Tax Act 1961, stating the following case for the opinion of this court, viz. whether on the facts and the circumstances of the case, the assessee is entitled to earned income relief as da-fined in Section 2(6AA) of the Act

(2.) The assessee (Opposite Party) is a Hindu deity, Uma Maheshwari, acting through its shebait, H. Barat, who was appointed as shebait under the orders of the Calcutta High Court made in 1936. The assessee owns several collieries and other business assets in Dhanbad District of Bihar. Here, we are dealing with the assessment year 1961-62. for which the relevant accounting year was the financial year 1960-61. Hence, the law applicable will be the old Act, viz., Indian Income-tax Act, 1922 (hereinafter) referred to as the Act

(3.) The assessee claimed earned income relief; but that claim was rejected both by the Income-tax Officer and the Appellate Assistant Commissioner who thought that a deity, though a juristic person for assessment was incapable of earning any income. The Income-tax Appellate Tribunal, however, granted earned income relief relying on Section 41 (1) of the Act, and observed that, inasmuch as the shebait was appointed by the Court and it was he who carried on the business of the deity assessee and he was capable of earning income, the assessee would also get the benefit of that income,