C.I.T. WEST BENGAL III, CALCUTTA versus SRI JAGANNATH JEE (THROUGH SHEBAITS)

Citation: [1977] 2 S.C.R. 483 · Decided: 17-12-1976 · Supreme Court of India · Bench: HANS RAJ KHANNA, V.R. KRISHNA IYER · Disposal: Appeal(s) allowed

Judgment (excerpt)

/ 
483 
C.I.T. WEST BENGAL III, CALCUTTA 
\\ 
SRI JAGANNATII JEE (THROUGH SHEBAITS) 
December 17, 1976 
[H. R. KHANNA AND V. R. KRISHNA IYER, JJ.] 
Income Tax A.ct 1922-Sec. 4\3) (I), 22(2)-Trust for religious and charit-
able purposes-Whether d~duction to deity or vesting in. trustees-If income of 
deity-Charge and diversion of income at source. 
A 
B 
, Indian Succes.1ion Act, 1925-Sec. 87-Will-Construction of a Will of a 
C 
religious Hindu drafted by English solicitor-Whether court must look into the 
real intention. 
Raja Rajendra Mullick Bahadur of Calcutta executed his last will 
on 
21-2-1887. The author of the Will was a religious minded Indian, the drafts-
man of the document was John Hart, an English Solicitor. The Will open 
with the words 'I hereby dedicate and make debutter my Thakurbaree'. 
The 
Income Tax Officer issued notices requiring filing of the returns 
against the 
Deity Thakurbaree. . On behalf of Deity, a nil income return was filed under 
D 
s. 22 (2) of the Indian Income Tax Act, 1922 for the assessment years 1956-57 
and 1957-58. In connection with the writ petition filed in the High Court for 
the proceedings in respect of assessment years 19~5-56 it was conceded by the 
Revenue that a part of the income of the assessee which would be proved before 
the Income Tax authorities to have been applied in 'connection with feeding of 
·the poor, subscription to other charities enuring for the benefit of the public 
would b' exempted under s. 4(3)(i) of the Income Tax Act, 1922. 
The Revenue contended that on a true construction of the said will 
there 
E 
was a complete dedication ot the property to the Deity and, therefore, the income 
arising from the said property was taxable in the hands of Deity. It was, 
however, contended by th~ assessee that the remuneration of the trustees and 
the allowances to the widows of the deceased trustees as provided in the Will 
created a charge on the income of the trust estate and should therefore be treat-
ed as diversion of the income of the trust before it accrued in the hand of the 
trustees. 
The Income Tax Officer taxed the income of the Deity deducting 
therefrom such amounts as were conceded before the High Court in respect of 
F 
the prior year. 
The appeal preferred by the assessee was dismissed bv the 
Appellate Assistant Commissioner. Before the Tribunal, the Revenue substan-
,~ 
tially succeeded. 
Thereafter, the Tribunal referred 4 questions of law to the High Court, 
two at the instance of the assessee and two at the instance of the Revenue., 
The High Court on a meticulous consideration of the entire Will 
decided 
against the Revenue and took the view that reading the Will as a whole the 
entire beneficial interest in the properties did not vest in the assessee Deity. 
G 
Assessee Deity was not the owner of the properties and, therefore, the only 
income which could be subiected to income tax in the hands of the assessee 
would be the beneficial interest of the said Deitv under the' Will which would 
be the expenses incurred for Seva Puia of the Deity and for the various religious 
ceremonies connected with the said Deity and the value of the residence of the 
Deity in the temple. 
Allowing the appeal, 
B 
HELD : 1. The Will represents oious Bengali Wishes and disposition but 
drafted in the hands of an English Solicitor. The court's function in such an 
A 
B 
c 
D 
484 
SUPREME COURT REPORTS 
[1977] 2 S.C.R. 
ambiguous situation is to steer clear of the confusion imparted by the diction 
and to read the real intention of the testator. The courts discerning loyalty is. 
not to the formalitistic language used in drawing up the deeds but to 
the 
intentions which the 
dispon~r desired should take effect in the manner 
he 
designed. The real question is whether the testator created an 
ab>o.ute 
or 
partial debutter or was there no dedication to the idol but a vesting of the legal 
estate in the trustees. The use of the words like trust, trustees and Shebaits 
can lend support to the contention that the legal estate vested in ttlle tru,tees. 
However, the court has to push aside the English hand to reach at the Indian 
heart. We are construing the Will of a pious Hindu aristocrat whose faith in 
.ritual performances was more than matched by his ecumenical perspective. 
Secondly, the sacred sentiment writ large in the Will is his total devotion and 
surrender to the family Deity Shri Jagannathjee. It looks like doing violence 
to the heart of t

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