will be operative so long so the selling rate of unpolished slabs does number exceed Rs.
The appellant submitted a return under protest.
Thereupon the appellant moved the High Court by a petition under article 226 of the Constitution and obtained an ad interim injunction from the High Court.
1 per 100 sq.
While dealing with issue No.
The Government of India appointed a companymissioner of Income tax for Rajasthan.
1,50,000 per financial year provided that the aforesaid rate of Rs.
1 in the action was number entitled to recover from the appellant income tax, super tax or excess profit tax it also prayed for a second declaration that the application of the Indian Income tax Act, 1922, to the appellant during the companytinuance of the grant was a violation of article 295 of the companystitution and therefore illegal and void.
The appellant alleged that thereafter it was advised to withdraw the writ petition in the High companyrt and to file a suit in a companypetent civil companyrt.
The Associated Stone Industries Kotah Ltd., appellant before us, was incorporated in 1945 under the Indian Companies Act, 1913, as applied to the erstwhile Kotah State.
The learned District Judge who tried the suit framed as many as eleven issues and gave his findings on most of them.
The suit was companytested by the Union of India as also by the State of Rajasthan, the two defendants in the action.
The said Income tax officer served the appellant with a numberice under section 22 2 of the Income tax Act and asked the appellant to submit a return of its income for the assessment year 1950 51.
The Income tax Officer Kotah then demanded from the appellant a return of its income for the year 1951 52.
shall be increased by 25 of the excess over ten rupees.
It was alleged that the High companyrt issued a writ on December 14, 1951, restraining the Union of Indian from taking any action whatsoever under the Indian Income tax Act, 1922, for the period prior to April 1, 1950.
The appellant also claimed certain other reliefs the details whereof need number be set out.
The State of Kotah integrated with the other State of Rajasthan by a process the history of which we have described in the judgment delivered to day in the other two appeals.
This was objected to by the appellant and it moved the High Court of Rajasthan for a writ under article 226 of the Constitution.
By that process of integration Kotah first came within the United State of Rajasthan thereafter on January 26, 1950, the United State of Rajasthan became the Part B state of Rajasthan in the Union of India within the frame work of the Constitution of India.
The Income tax Officer then demanded from the appellant a return of its income for the year 1952 53.
There is numberdecision on the point of the honble High Court or the honble Supreme Court.
The High Court answered the question against the appellant.
According to the appellant the grant was the expression of the will of the then Sovereign Ruler of Kotah and by virtue of the aforesaid clause the number to levy assess or companylect income tax super tax and excess profit tax and to exempt the appellant from any existing or future enactment governing the levy assessment or companylection of the aforesaid taxes.
His Highness the Maharajah of Kotah who was the Sovereign Ruler of the Kotah State at the time granted a lease in favour State of the appellant to work the limestone mines in two tahsils of the Kotah State for a period of fifteen years from October 1, 1944, to September 30, 1959.
An Income tax officer was also appointed at Kotah.
In the event of the selling rate going above this figure the royalty per 100 sq.
On December 15, 1953, the appellant instituted a suit in the companyrt of the District Judge of Kotah in which it prayed for a declaration that during the companytinuance of the grant dated May 2, 1945, the Union of Indian defendant No.
11 which raised the question of the reliefs to which the appellant was entitled, the learned district judge referred to section 113 of the Code of civil Procedure and then said In this case I am of the opinion that the application of the Indian Income tax Act, 1922, is invalid so far as the plaintiff companypany is companycerned and I have given my reasons therefor.
The appellant then obtained a certificate from the High Court under article 132 of the companystitution in respect of its decision on the companystitutional questions and preferred the present appeal in pursuance of that certificate.
By virtue of the Finance Act, 1950, the Indian Income tax Act, 1922, was extended to the territories of the Part of B State of Rajasthan.
subject to the minimum amount of Rs.
10 per 100 sq.
The grant was in writing and clause 18 of the grant was in these terms In companysideration of the companycessions and privileges granted by the grantor and in lieu of income tax super tax and excess profit tax the grantee companyenants to pay to the grantor royalty on the stone excavated at the rate of rupee on per 100 sq.
This appeal was heard along with two other appeals, Maharaja Shree Umaid Mills Ltd. v. Union of India, in which we have delivered judgment today.
K. DAS J. This is an appeal on a certificate granted by the High Court of Rajasthan under article 132 1 of the Constitution.
