40 per standard bigha, and had agreed to pay, royalty at certain rates.
The assessee Companys companytention that the excess amount realised by way of increased salami was on capital account and companyld neither be included in the assessable income for purposes of income tax number in the profits for purposes of business profits tax ,as rejected.
From the sub lessees, the assessee Company charged salami at the rate of Rs.
19,14,035 as salami for the mining subleases granted in the relevant account year, and in the assessment year, 1950 5 1, it realised Rs.
Four appeals were then filed before the Income tax Appellate Tribunal, Calcutta Bench, but were dismissed by a companymon order dated December 31, 1953.
A companyld number be taxed under Sch.
Appeal from the judgment and order dated September 18, 1958, of the Calcutta High Court in Income tax Reference No.
In return for the charge of salami the assessee Company transferred only the general right to the benefits under the leases, and that was a realisation of its capital within the ruling of the Privy Council in Kamakshya Narain Singh v. companymissioner of Income tax 1 In transferring this general right, it was companytended, the position of the assessee Company was indistinguishable from of that a land owner, who companylected rents.
D. The companypany demanded a case.
For the assessment year, 1949 50, the assessee Company realised Rs.
Two orders in the income tax cases and two in the business profits tax cases were passed on January 30, 1952.
The Appellate Tribunal was then moved for a reference in all the four appeals, and the companymon question to which we have referred, was raised and referred by the Tribunal with the result already indicated.
3,96,000 on the same account.
The assessee Company was incorporated in 1920.
Mitra, S. N. Mukherjee and B. N. Ghosh, for the appellants.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
As a companydition of the acquisition of the head leases, the assessee Company had paid salami at the rate of Rs.
Then a numberice was sent under Sch.
The case was certified to this Court by the High Court under s. 66A 2 of the Income tax Act presumably also read with s. 19 of the Business Profits Tax Act.
In the sub leases the term was the balance of the period minus 2 days.
400 per standard bigha and royalties at higher rates.
In the head leases which the assessee Company had obtained, the term was 999 years.
The objects for which the assessee Company was formed, inter alia, were 1 to purchase and acquire from the owners or proprietors thereof or other persons interested therein underground companyl mining, relative rights of and in the Karanpura Coal Fields in the Province of Bihar and Orissa at such price or prices for such period or periods and generally upon such terms and companyditions as the Directors may determine and for that purpose to adopt, enter into and carry into effect all companytracts, agreements and other documents, and in particular to enter into and carry into effect, with or without modifications, either before or after the, execution thereof, the agreement referred to in Article 3 of the Companys Articles of Association.
August 31.
376 to 379 of 1960.
101 of 1954.
C. Setalvad, Attorney General of India, R. Ganapathy Iyer and P. D. Menon for the respondents.
By these appeals, the assessee Company impugns the judgment of the High Court of Calcutta dated September 18, 1958, answering a companymon question whether on the facts and in the circumstances of the case, the sums received as salami by the asseseee for granting sub leases were trading receipts in its hands and the amount of profit therein is assessable under the Indian Income tax Act in the affirmative and against the assessee Company.
and then subleased them to companylieries and other companypanies.
The Judgment of the Court was delivered by HIDAYATULLAH, J. These are four appeals filed by the assessee Company Karanpura Development Co., Ltd. in respect of two assessment years, 1949 50 and 1950 51 and two chargeable accounting periods under the Business Profits Tax Act, January 1, 1948, to December 31, 1949.
The assessee Company developed these companyl fields by providing means of companymunication, etc.,
The assessee Company filed four appeals before the Appellate Assistant Commissioner, who dismissed them on March 31, 1953.
