Judgement

Appeal (No. 83 of 1946) from a judgment of the High Court (March 23, 1944) which was delivered on a reference under s. 66, sub-s.3, of the Indian Income-tax Act, 1922, pursuant to a mandamus issued by the same court (April 3, 1941).

The following facts are taken from the judgment of the Judicial Committee. The respondent, the Tribune Trust, hereinafter referred to as "the respondent,” was created by one Sardar Dayal Singh in the year 1898, and it appeared 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, sub-s 3 (i.), of the Income-tax Act which provided 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 . . . ." That claim led to a reference to the High Court of Judicature at Lahore under s. 66 of the Act. That court, on June 4, 1935, held, contrary to the contention of the respondent, that its income was not exempt from tax. The respondent appealed to His Majesty in Council, and the Board, after referring the matter back to the commissioner for further findings of fact, on June 13, 1939, reversed the judgment of the High Court and held that the income, in respect of which the respondent had been assessed for the year in question, was exempt from tax. Their Lordships decision is reported, Tribune Press Trustees, Lahore

v. Income Tax Commissioner (( 1939) L. R. 66 I. A. 241.).

The assessments of the respondents income for the years subsequent to 1932-33 were held in abeyance pending the judgment of the High Court in the matter of the assessment for that year, but after its judgment in June, 1935, assessments were completed in accordance therewith, and payments were duly made by the respondent in respect of the assessments for the years 1933-34, 1934-35, 1935-36, 1936-37, 1937-38, 1938-39 and also in respect of supplementary assessments for the years 1931-32 and 1936-37. The history of those assessments was briefly as follows

1931-32. A supplementary assessment was made under s. 23, sub-s. 4, read with s. 34 of the Act, on November 14, 1936. An appeal to the assistant commissioner was dismissed as no appeal from an order under s. 23, sub-s. 4, was then competent, and an application to the commissioner under s. 33 was also rejected.

1933-34 and 1934-35. Orders of assessment were passed under s. 23, sub-s. 3, on September 4, 1935. The respondent appealed to the assistant commissioner under s. 31 and its appeals were rejected on

August 31, 1936. No further action was taken by the respondent.

1935-36. The assessment was made under s. 23, sub-s. 3, on January 27, 1936. No appeal was filed.

1936-37. The assessment was made under s. 23, sub-s. 3, on November 11, 1937. An appeal was

rejected by the assistant commissioner on May 14, 1938. No further action was taken by the

respondent.

1937-38. The assessment was made under s. 23, sub-s. 3, on January 26, 1938. No appeal was filed.

1938-39. The assessment was made under s. 23, sub-s. 3, on October 26, 1938. No appeal was filed.

The relevant dates of the different stages of those assessments are tabulated

below

Date of Date of Appellate Order

Assessment Year Assessment Payment dismissing

Order Appeal

1931-32 supplementary 24.11.36 22.1.37 22.7.37

1933-34 …. ….. ….. 4.9.35 21.10.35 31.8.36

1934-35 …. ….. ….. 4.9.35 21.10.35 31.8.36

th1705 1935-36 …. ….. ….. 27.11.36 4.1.37 ……

1936-37 …. ….. ….. 11.9.37 4.10.37 14.5.38

1936-37 supplementary 26.10.38 8.12.38 ……

1937-38 …. ….. ….. 26.1.38 26.3.38 ……

1938-39 …. ….. ….. 26.10.38 7.1.38 ……

It was not disputed that all those assessments had been made, and had become final and conclusive, before the Board gave its decision in respect of the assessment for the year 1932-33. O