| Case ID |
250bbc96-b1d3-40c3-ba9e-f4b0786a040f |
| Body |
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| Case Number |
MISC. CIVIL CASE No. 61 OF 1965 |
| Decision Date |
Nov 11, 1968 |
| Hearing Date |
|
| Decision |
The court held that the document executed by the assessee and her husband constituted a wakf rather than a will. The court determined that the properties dedicated under the wakf deed were not owned by the assessee at the relevant valuation date, thus they could not be included in her net wealth. The court emphasized that once a property is dedicated for charitable purposes under Mohammedan law, the ownership is transferred to God, extinguishing the rights of the dedicator. The decision favored the assessee, confirming the properties were held in trust for charitable purposes and not subject to wealth tax. |
| Summary |
In the case of Commissioner of Wealth Tax v. Begum Hashmatbi, the Madhya Pradesh High Court dealt with the implications of the Wealth-tax Act, 1957, particularly regarding the classification of properties dedicated under a wakf deed. The case centered around a document executed by a Mohammedan couple that declared their movable and immovable properties to be given in wakf after their demise. The key legal issue was whether these properties should be included in the net wealth of the surviving spouse during the assessment year 1957-58. The court found that the document clearly indicated an immediate dedication of the properties to charitable purposes, reserving only the income for the couple's lifetime. This led to the conclusion that the properties ceased to belong to the assessee upon execution of the wakf deed. This judgment reinforces the principles of Mohammedan law regarding wakfs and the extinguishment of ownership rights upon dedication of property for religious or charitable purposes, ultimately ruling in favor of the assessee and clarifying that such properties are not subject to wealth tax under the provisions of the Wealth-tax Act. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Not available
|
| Judges |
P.V. Dixit, CJ,
G.P. Singh, J
|
| Lawyers |
P.S. Khirwadkar,
M.A. Khan,
A.S. Usmani
|
| Petitioners |
Commissioner of Wealth Tax
|
| Respondents |
Begum Hashmatbi
|
| Citations |
1970 SLD 555,
(1970) 77 ITR 586
|
| Other Citations |
Bhawani Prasad v. Smt. Surendra Bala AIR 1960 All. 126,
Fazlul Rabbi Pradhan v. State of West Bengal AIR 1965 (SC) 1722,
Kuppuswami Raja v Perumal Raja [1964] AIR 1964 Mad. 291,
Trustees of the Tribune Press, In re [1939] 7 ITR 415 (PC),
Yeshwant Rao v. CWT [1966] 61 ITR 444 (SC)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
2(m)
|