COMMISSIONER OF INCOME-TAX, WEST PUNJAB, NORTH-WEST FRONTIER AND DELHI PROVINCES, LAHORE Vs. TRIBUNE TRUST, LAHORE

JUDGEMENT

(1.) This appeal is brought from a judgment of the High Court of Judicature at Lahore dated 23 - 3 - 1944, which was delivered on a reference made by the Commissioner of Income - tax, West Punjab, N W. F. and Delhi Provinces under S. 66 (3), Income - tax Act (11 of 1922) pursuant to a mandamus issued by the same Court on 3 4 1941.

(2.) The appeal raises somewhat complicated questions of procedural and substantive law and it is necessary to state the facts at some length.

(3.) The respondent, the Tribune Trust, which will generally be referred to as "the respondent," was created by one Sardar Dayal Singh in the year 1898 and it appears to have been assessed to, and to have paid, income - tax on the income, profits or gains of its property, from the year 1917 - 18 to the year 1931 - 32. But in respect of its assessment for the year 1932 - 33 it raised an objection on the ground that it was exempt from taxation by virtue of S. 4 (3) (i), Income - tax Act already mentioned, which provides: "This Act shall not apply to the following classes of income - (i) any income derived from property held under trust or other legal obligation wholly for religious or charitable purposes......"