JUDGMENT

T.P. Mukerjee, J. - The present reference made by the Appellate Tribunal u/s 27(1) of the Wealth-tax Act, hereafter referred to as the Act, arises out of the assessment of net wealth of the applicant, Chintamani Ghosh Trust, Allahabad, hereinafter referred to as " the trust". The statement of the case relates to the assessment years 1957-58, 1958-59, and 1959-60. The corresponding valuation dates are 31st March, 1957, 31st March, 1958, and 31st March, 1959, respectively. Four questions of law, to be set out presently, have been raised by the Tribunal for the opinion of this court.

2. The trust was created by the late Sri Chintamani Ghosh by and under written and registered deed dated July 24, 1924, for making provision for defendants and other relatives of the settlor, for charity, and for due performance of the worship of the family deity, Sri Sri Sridharjee. The property settled on trust consisted of certain shares valued at Rs. 2,19, 765 and also a sum of Rs. 2,80,235, which had been deposited by the settlor with the Indian Press Ltd., Allahabad. The total value of the amount settled on trust was, thus, Rs. 5,00,000 only, at the inception. The property so settled has been referred to in the deed as endowed property. Subsequently, the trustees acquired extensive house properties in Allahabad and also movable properties with the trust money which constituted the basis of the assessment of the net wealth of the trust, during the three relevant: assessment years.

3. Under the terms of the deed of trust, the settlor constituted himself the sole trustee and the absolute sebayet of his family deity, Sri Sri Sridharjee, who is one of the beneficiaries. After the settlor's death, the management and administration of the trust estate vested in a board of trustees.

4. The habendum of the deed runs as follows :

"Now these presents witnessed... .that the settlor... .doth hereby .....convey, transfer, alienate and make over... .to and in favour of the trustees (after divesting himself fully and completely) the said endowed property... .by way of endowment of religious and charitable trust to unto, and in favour of and on behalf of the said deity known as and called Sri Sri Sridharjee, subject to the provisions, conditions, stipulations and terms herein set out TO HAVE AND TO HOLD unto and to the use, enjoyment and benefit of the said deity Sri Sri Sridharjee through the trustees... .for the purposes of puja, seva and utsab as for carrying out the objects of trust and charity mentioned hereinbelow."

Clause 7 of the deed of trust sets out the names of the different beneficiaries and the extent of the benefits conferred on them. The terms of this clause are set out below in extense :

" 7. That, out of the income and rents arising out of endowed property all taxes, revenues, cesses, rent, repairing charges, costs of litigation and other periodical dues, payable in respect of the endowed property or any portion thereof or for the upkeep thereof, shall in the first instance be paid. Out of the balance left, shall be devoted, spent and utilised various sums of money for the following objects, in the manner following, that is ta say:

(1) That the trustees shall set apart 15 per cent, of the net income every year, which shall be invested in securities and properties allowable under law in the case of trustees and this shall be added to the endowed property.

(2) That 15 per cent, of the net income shall be devoted, in such share and proportion as the trustees may decide :

(a) to the worship, performance of ceremonies, festivals and rituals in connection with or relating to the worship of the said deity Sri Sri Sridharjee in the manner enjoined by the Hindu sastras and by the traditions of the family of the settlor and for the salary, remuneration or sacredotal dues of the priest or priests as the case may be, as well as for the wages and salaries of the servants, employees and menials engaged for the seva, puja and utsab of the said deity. The said