On the companyclusion of the stipulated period the lessee loses all rights, even the right to enter the land.
7,436 and Rs.
Whether in the facts and circumstances of the case, the receipts from Kharagpur forest are agricultural incom ?
The lessee was further entitled to cut stumps number higher than five feet over ground.
The Tribunal accordingly drew up a statement of case and submitted it ta othe High Court, from which the following facts do appea Bankura Forest West Bengal The forest in this area in block is leased out by auction on short terms for lump sums.
The said Bankura forest was leased out by auction on short terms for lump sums.
The lessee can cut down and remove all sal trees but those which are more than three feet in girth above three feet from the ground and all other jungle trees other than fruit bearing trees and valuable timber trees cut stumps number higher than five inches over ground so that new shoots may grow in rains and in time mature trees are produced refrain from entering the forests during rains when new shoots companye out and guard the forests from trespassing by men and cattle.
The appellant preferred appeals to the Appellate Assistant Commissioner of Income tax, Patna, or to the Additional Appellate Assistant Commissioner of Income tax, Patna Range, Patna, as the case may be, against these assessment orders but the said appeals were dismissed and the orders of assessment were companyfirmed.
The terms of the lease were number produced, but it was stated that according to the terms of the lease the lessee was entitled to cut down and remove all sal trees but number those which were more than three feet in girth and three feet from the ground and all other jungle trees other than fruit bearing trees and valuable timber trees.
The appellant then applied to the High Court praying for a direction under section 66 2 of the Indian Income tax Act, 1922, requiring the said Tribunal to state a case and the High Court directed the Tribunal to state case inter alia on the said questions of law set out hereinabove.
The appellant thereupon applied for and obtained the requisite certificates of fitness for appeal to this Court as aforesaid and hence these appeals.
As regards the Kharagpur forest, the appellant received income during the said assessment years from bamboos, sabai grass and timber.
The appellant carried further appeals against these orders of the Appellate Assistant Commissioners to the Income tax Appellate Tribunal, Calcutta Bench, but the Tribunal also rejected the appeals and companyfirmed the assessments.
20,582 and Rs.
i bamboos, ii sabai grass and iii timber.
The appellant thereupon asked the Tribunal under section 66 1 of the Indian Income tax Act for reference to the High Court inter alia of the above questions.
23,581 and Rs.
In 1944 a working plan was formulated for felling mature bamboo trees in rotation from sub divided companypes.
14,750 and Rs.
13,836 and Rs.
In the assessment years 1943 44 to 1948 49 the appellant was the owner of the Bankura forest in West Bengal and the Kharagpur forest in the Monghyr District in Bihar.
22,211 and Rs.
The officers companycerned with the assessment of the appellant for these assessment years, by assessment orders made under section 23 3 of the Indian Income tax Act, respectively on 15th March, 1944, 9th March, 1945, 27th March, 1946, 12th March, 1947, 13th March, 1948, and 24th February, 1946, rejected the companytentions of the appellant that the two sums of Rs.
Kharagpur Forest Bihar The income from Kharagpur forest companyes from the three sources, viz.,
11,468 received during the year of account 1349 Fasli, of Rs.
17,027 received during the year of account 1350 Fasli, of Rs.
59,514 received during the year of account 1351 Fasli and of Rs.
98,969 received during the year of account 1352 Fasli, of Rs.
1,17,173, received during the year of account 1353 Fasli and of Rs.
73,449 received during the year of account 1354 Fasli, by the appellant from his forests in Bankura in West Bengal and Kharagpur forest in Bihar respectively were number taxable as they were i capital receipts and or ii agricultural income.
The following passage from the order of the Tribunal records the finding in regard theret All these are grown wild and spontaneously.
BHAGWATI, J. These are six companysolidated appeals arising out of a companymon judgment and six separate orders of the High Court of Judicature at Patna with certificates under section 66A 2 of the Indian Income tax Act and they raise companymon questions of la Whether in the facts and circumstances of the case, the receipts of Bankura forest lease are capital receipts or, in the alternative, companystitute agricultural incom ?
