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 inco