| Case ID |
005477c7-41b8-4d98-a53b-6d364af2470b |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 2129 TO 2132 OF 1968 |
| Decision Date |
Aug 20, 1969 |
| Hearing Date |
|
| Decision |
The Supreme Court upheld the High Court's ruling that the right of the beneficiaries to receive a share of the net income from the wakf estate constituted an asset assessable to wealth tax under the Wealth-tax Act, 1957. The Court clarified that the definition of 'assets' is broad and includes various forms of property, even non-transferable rights. The appellants' arguments that their rights were merely rights to annuities were rejected, emphasizing that the income from the wakf was not solely for maintenance but represented a vested interest in property. Consequently, the appeal was dismissed, affirming the High Court's decision and the assessment of wealth tax on the beneficiaries' shares in the wakf estate. |
| Summary |
The Supreme Court of India addressed a significant question regarding the assessment of wealth tax on the beneficiaries of a wakf estate. The case involved Ahmed G.H. Ariff as the petitioner, who contested the assessment made by the Commissioner of Wealth Tax. The core issue was whether the right to receive a specified share of income from the wakf estate constituted an 'asset' under the Wealth-tax Act, 1957. The Court examined the nature of wakf, a legal institution rooted in Islamic law, which involves the dedication of property for charitable purposes. The Court concluded that the beneficiaries' rights to income from the wakf estate were indeed assets that should be included in their net wealth for tax purposes. This ruling highlights the complexities of property rights in the context of Islamic law and wealth taxation. |
| Court |
Supreme Court of India
|
| Entities Involved |
|
| Judges |
J.C. SHAH, AG., C.J.,
V. RAMASWAMI,
A.N. GROVER
|
| Lawyers |
A.K. Sen,
S.K. Hazare,
P.K. Mukherjee,
B. Sen,
S.A.L. Narayana Rao,
R.N. Sachthey
|
| Petitioners |
Ahmed G.H. Ariff
|
| Respondents |
Commissioner of Wealth Tax
|
| Citations |
1970 SLD 420,
(1970) 76 ITR 471
|
| Other Citations |
Abdul Karim Adenwalla v. Rahimabai [1946] 48 Bom. L.R. 67,
Commissioner, Hindu Religious Endowments, Madras v. Shri Lakshmindra Thirtha Murliar of Sri Shirur Mutt [1954] S.C.R. 1005,
Commissioners of Inland Revenue v. Crossman [1937] A.C. 26,
Vidya Varuthi Thirtha v. Balusami Ayyar [1921] L.R. 48 I.A. 302,
G.H. Ariff v. CWT [1966] 59 ITR 230 (Cal.),
CWT v. Purshottam N. Amersey [1969] 71 ITR 180 (Bom.)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
2(e),
7
|