On 27 January, 1997, I had raised the question of lease by the Karnataka State Board of Wakfs of a Qabristan and the Central Wakfs Council. I have received the following report from your Ministry vide letter No.13(8)(2)97-Wakf dated 13.5.1998.

"The old Qabristan land situated at Sy. No. 38 measuring 0.37 guntas at Kengeri is a notified Wakf property being managed by the Jamia Masjid, Kengeri, Bangalore.

On the proposal received from the management of the above mosque,. the Chairman, District Welfare Committee in his letter addressed to the Karnataka State Government of Wakfs, has recommended for lease of the above land to one Smt. D.T. Sangeetha wife of Shri H.P. Madhusudha, Vijayanagar, Bangalore.

The subject was placed before the Lease Sub Committee to approve the same and to recommend to Board for approval. Accordingly, the subject was placed before the meeting of the Board which approved the grant of lease to the said Smt. D.T. Sangeetha under Section 56 of the Wakf Act, 1995 read with Rule 54 of the Karnataka Wakf Rules 1997 with the following terms and conditions:

(a) Lease period be for a period of three years.

(b) Non-refundable deposit of Rs. 5.00 lakh.

(c) Monthly rent of Rs. 6000/-

On queries made by this Ministry, the Board has further clarified that the said piece of land was a disused graveyard for the last several years and the local Muslims were not able to either develop or protect it. The Board has further confirmed that the advance and rents fixed are in accordance with the prevailing market value of that area. Further, 20% of the revenue received has been earmarked for educational purposes of the Muslim students of the town."

I would be grateful to know the purpose for which the Qabristan shall be used by the lessee and whether the purpose will involve excavation.

I would also like to know whether there are any pucca graves in the Qabristan, and if so, whether they are liable to be demolished by the lessee. On these necessary clarification may please be sought from the Karnataka State Board of Wakfs.

The Report also raises a number of questions of policy:

1)Can a 'disused' Qabrisian be leased out?

2)If so, can it be leased out for any purpose?

3)Can the market value be determined without an open tender?

4) If the local Muslim community is not in a position to protect or develop it, can't the State Wakf Board undertake the construction of a boundary wall or fence and its development.

I think these need to be considered by the Central Wakf Council.

Supreme Court     I - On Wakf Property

Sayyed Ali and others, Appellants v. Andhra Pradesh Wakf Board, Hyderabad and others, Respondents.

DR. A.S. ANAND AND V.N. KHARE, JJ.

Wakf Act (29 of 1954), Section 3(1) - "Wakf" property - Character of - Dedication of property need not be in favour of Dargah - Grants by way of service inams for purposes recognised by Muslim Law as pious, religious or charitable - Constitute property as "wakf" - Wakf being permanent dedication, grant of patta under Inams Act does not nullify it.

Civil P.C. (5 of 1908), Section 11 - AP (A.A.) Inams (Abolition and conversion into Ryotwari) Act (1956), Section 3 - Res judicata - Suo moto enquiry by Tahsildar for grant of patta under Inams Act -Tahsildar cannot adjudicate upon character of wakf property as same can be decided in manner provided in Section 6 of Wakf Act - Finding of Tahsildar that disputed property is not wakf property - Is erroneous and without jurisdiction - Finding cannot operate as re judicata in subsequent suit filed by Wakf Board under Section 6 of Wakf Act for deciding character of wakf property ...                                                        (Source: AIR 1998 Supreme Court 972)

II- On Income Tax Exemption for Trusts

S.R.M.M.CT.M. Tiruppani Trust, Appellant v. Commissioner of Income-tax, Respondent.

Mrs. SUJATA V. MANOHAR AND D.P. WADHWA, JJ.

Income-tax Act (43 of 1961), Section 11. Charitable or Religious Trust - ... applying its income for charitable purposes in India - entitled to exemption under Section 11(1) to that extent – Further accumulating 25% of its total income of that year - Such accumulated income also is entitled to be exempted under Section (1)(a).

Under Sec. 11(1) every Charitable or Religious Trust, irrespective of whether it has filed a declaration under Sec. 11(2) or not, is entitled to deduction of certain income from its total income of the previous year. The income so exempt is the income which is applied by the Charitable or religious Trust to its charitable or religious purposes in India. If the entire income is so applied, the  entire income would be exempted. If the entire income is not applied but some income is accumulated by such a trust, then also under Sec. 11(1)(a), such accumulated income to the extent of 25% of the total income (or Rs.10,000 whichever is higher) would be exempted from Income-tax. Sec. 11(2), in turn, provides that the restriction which is specified in Clause (a) of sub-section (1) as regards accumulation, shall not apply if the assessee gives notice as prescribed under Sec. 11(2)(a) and invests the amount accumulated in Government securities as per Sec. 11(2)(b). The restriction specified in Clause(a) of sub-section (1) is clearly the restriction of 25% of the accumulated income (or Rs.10,000, whichever is higher) being exempt. If more than 25% (or Rs.10,000) is to be exempted then the assessee has to comply with the conditions prescribed under Sec11(2) ...       (Source: AIR 1998 Supreme Court 1107)