By part V the syndicate agreed to pay Rs.
The Appellant Assistance Commissioner upheld those companytentions of the appellant and directed that the said sums be excluded from the total income of the appellant.
270.45 nP., that the total Jama payable to the appellant was Rs.
Under the terms of the lease with the syndicate it was stipulated that the syndicate shall pay all taxes, rates, assessment and impositions of a public nature.
In companypliance with an order of the High Court, the Tribunal submitted a supplementary statement of the case observing that the lands in question which were alienated villages between August 1, 1950, and August 15, 1950, had ceased to be alienated villages in companysequence of the application of the Bombay Taluqdari Abolition Act, 1949 62 of 1949 , that the total amount of assessment payable in respect of these villages was Rs.
b every sum which would have been assessable on any land as land revenue, had there been numberalienation of land revenue, or c every sum which would have been assessable on any land as land revenue, had the land number been talukdari land.
A holder of unalienated and had therefore in addition to the land revenue to pay local fund cess at the rate of three annas on the land revenue assessed on the land.
39,515 in the year ending July 31, 1952, being 3/16th of the amount of rent and royalty payable to the appellant in accordance with the terms of Part V of the lease.
39,515 received by the assessee from the syndicate is income for the purpose of the Indian Income tax Act, 192 ?
1,222.92 and the local fund cess due in respect of the lands was Rs.
By section 96 of the Act 6 of 1923 it is provided that the cess described in section 93 shall be levied, so far as may been the same manner, and under the same provisions of law, as the lane revenue.
2,629 8 8 as rent and royalty at the rate of 8 per cent.
By clause 1 of part VII it was agreed that The lessee shall pay the rent and royalty reserved by this lease at the time and in the manner provided in the Parts V and VI and shall also pay and discharge all taxes, rates, assessments and imposition whatsoever being in the nature of public demands which shall from time to time be charged, assessed or imposed upon or in respect of the mines or works of the lessee or any part thereof by authority of the Government of India or the Government of Bombay or otherwise except demands for land revenue The appellant received from the syndicate, besides rents and royalty, Rs.
In respect of alienated lands, the land revenue assessed on the land may be wholly or partly remitted, but the local fund cess is levied as a fraction of the land revenue.
of the sale value of all manganese ore.
In appeal to the Appellate Assistant Commissioner of Income tax, Baroda Range, it was maintained by the appellant that the to sums were number taxable, because they represented local fund cess companylected by him on behalf of the Government of Bombay or the Local Board, Panch Mahals, and in any event because they were receipts of a causal and number recurring nature.
The effect of the companyenant was that the syndicate will reimburse the appellant for local fund cess and other taxes paid by him.
16,309/Rs.
In the view of the Income tax Appellant Tribunal, the appellant received the two sums from the syndicate under the clause 1 of part VII of the lease agreement and number as local fund cess on behalf of the Government of the Bombay or of the Local Board, Panch Mahals, and the amounts were number receipts of a causal and number recurring nature.
The syndicate described this payment as local fund cess.
In parts II, III, and IV of the Schedule liberties, powers, privileges, restriction and companyditions enjoyed by the lessee were set out.
The Income tax Officer, Ward B, Panch Mahals, brought these two amounts to tax in the assessment years 1952 53 and 1953 54.
504.45 nP. and that the appellant under the Bombay Local Boards Act, 1923, to pay the cess as a percentage of land revenue and number of the Jama.
II If the answer to the above question is in the affirmative, whether the income receipt is exempt under section 4 3 vii of the Act by reason of its being of a causal and number recurring nature ?
The High Court, in the light of the supplementary statement of the case, recorded its answer on the first question in the affirmative, subject to the reservation that the amount of cess which the appellant was legally liable to pay under the Bombay Local Boards Act was number subject to income tax and answered the second question in the negative.
By section 45 all lands, whether applied to agriculture or other purposes, and wherever situate, are liable to pay land revenue to the Government according to the Rules enacted under the Code, except such as may be wholly exempted under the provisions of any special companytract with the Government or any law for the time being in force.
16,309 in the year ending July 31, 1951, and Rs.
The following are the materials terms of the indenture of lease In companysideration of the rents and royalties, companyenants and agreements by the and in these presents and in the Schedule here under written, reserved and companytained and on the part of the lessee to be paid, observed and performed, the lessor hereby grants and demises unto the lessee all those the mines, beds, veins, and seams of manganese ore situate, lying and being and under the land To hold the premises granted and demised unto the lessee for the term of twelve years which shall be deemed to have companymended from the first of December one thousand nine hundred and forty five Yielding and paying therefore unto the lessor the several rents and royalties mentioned in part V of the Schedule at the respective times herein specified subject to the provisions companytained in Part VI of the said Schedule.
With certificate granted by the High Court, these appeals have been preferred.
SHAH J. On December 11, 1947, the appellant granted to the Shivrajpur Syndicate Ltd. rights for the mining manganese ore from lands in two villages, Shivrajpur and Bhat.
