53,460/ and Rs.
the sale received Rs.
In proceedings for assessment for the assessment years 1949 50 and 1950 51 the Income tax Officer included in the total income of the respondent the amounts received by sale of loom hours as revenue receipts liable to tax.
The order of the Income tax Officer was companyfirmed by the Appellate Assistant Commissioner and the Income tax Appellate Tribunal.
1,85,230/ for sale of surplus loom hours.
At the instance of the respondent, the Tribunal referred the following question to the High Court of Judicature at Allahabad Whether on the facts and in the circumstances of the case the receipts of the assessee by the sale of loom hours amounting to Rs.
Appeals from the judgment and decree March 28, 1961 of the Allahabad High Court in Income tax Reference No.
53,460/ .
165 of 1954.
Clause 13 provided for registration of loom hours of each member of the association.
In the account year companyresponding to the assessment year 1949 50, the preparatory section of the factory of the respondent was unable to work the looms for more than 48 hours a week, and with the sanction of the Association the respondent sold 220 x 24 loom hours to the Naskarpara Jute Mills and as companysideration of.
In the account year companyresponding to the assessment year 1950 51 the respontdent received from the Birla Jute Mills and Hanuman Jute Mills a total amount of Rs.
66 and 67 of 1964.
CIVIL APPELLATE JURISDIVTION Civil Appeals Nos.
1,85,230/ in the assessment years 1949 50 and 1950 51 respectively were revenue receipts liable to tax under the Indian Income tax Act?
That agreement was to expire on December 11, 1944.
V. Gupte, Solicitor General, R. Ganapathy lyer and R.N. Sachthey, for the appellant in both the appeals .
V. Viswanatha Sastri, S. Murthy and B.P. Maheshwari, for the respondent in both the appeals .
With a view to companytinue the arrangement, a fresh agreement was executed on June 12, 1944.
The respondent was under the agreement allotted 220 x 72 hours per week.
The Judgment of the Court was delivered by Shah, J. The Maheshwari Devi Jute Mills Ltd. carries on the business of manufacturing jute goods and is a member of the Jute Mills Association.
The number of hours for which the members were entitled to work their factories were called loom hours.
Clause 10 prescribed the maximum number of loom hours for a mill with a companyplement of looms exceeding 220.
To protect the members against loss resulting from overproduction, members of the Association entered into an agreement dated January 9, 1932 called the First Working Time Agreement restricting hours of work.
