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PETITIONER: MAHARAJADHIRAJA SIR KAMESHWAR SINGH
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX, BIHAR AND ORISSA.
DATE OF JUDGMENT: 25/10/1960
BENCH: SHAH, J.C. BENCH: SHAH, J.C. DAS, S.K.
CITATION: 1961 AIR 362 1961 SCR (2) 74 CITATOR INFO : R 1965 SC1836 (12)
ACT: Income Tax- Exemption from taxation Agricultural income from trust properties-Trustee’s remuneration a Percentage of such income and resting on trust deed-Remuneration, whether agricultural income-Indian Income-tax Act, 1922 (11 of 1922), SS. 2(1),4(3)(viii)-
HEADNOTE: The appellant executed a deed of trust settling some of his lands for the maintenance of certain temples and Thakoorbaries. He was to be the trustee of the institutions and was to get 15% of the net income of those lands as trustee’s remuneration. Before the income-tax authorities the appellant claimed that as the income received from agricultural properties of the trust by him as trustee was agricultural income in his hands and was by virtue of s. 4(3)(viii) of the Indian Income-tax Act, 1922, exempt from liability to pay tax, the remuneration which by the covenant contained in the deed of trust he received was also exempt under that section because, when he appropriated a fraction of the rent or revenue of agricultural lands towards his remuneration, the original character of the income was ...