The appellant companypanys activity during the period companyered by assessment years 1956 57, 1957 58 and 1958 59 was that of developing the demised premises and letting out portions of the same as shops, stalls and ground spaces to shopkeepers, stall holders and daily casual market vendors.
The appellant had shown losses in its return for all the three years and the above claim was made on its behalf obviously for the purpose of carrying forward such losses.
The appellant claimed that its income from the leasehold property for the above mentioned three assessment years should be assessed under section 10 of the Act as letting out of that property was its business authorised by the Memorandum of Association.
If the Lessee companystructs any new structures and or buildings as mentioned in the preceding clauses the said structures and or buildings or erections together with all alterations renovation remodelling reconstruction thereto shall belong absolutely to the Lessors on the expiration or sooner determination of the term hereby granted and or the renewed period thereof as hereinafter mentioned.
The Lessors shall be at liberty to appoint at their own companyts a valuer and surveyor to verify such expenditure if, required for their satisfaction after the companypletion of the said work.
Appeals by special leave from the judgment and order dated July 20.
The objects for which the Company was established were given in the clauses of paragraph 3 of the Memorandum of Association.
The appellant, a private limited companypany, was incorporated on January 25, 1955.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
1748 1750 of 1968.
1967 of the Calcutta High Court in Income tax Reference No.
144 of 1963.
Clauses 6 and 7 of that paragraph were as under To purchase take on lease or otherwise acquire and to hold, cultivate, improve, lease, sell, exchange, mortgage, or, otherwise, dispose of land, houses, mines, minerals, mining and other real and personal property and to deal with the same companymercially.
1748 to 1150 of 1968 filed by special leave against L735SupCI/72 the judgment of the Calcutta High Court whereby the question referred to that Court under section 66 1 of the Indian Income tax Act, 1922, hereinafter referred to as the Act, was answered in favour of the revenue and against the appellant companypany.
C. Manchanda R. N. Sachthey and B. D. Sharma, for the respondent in all the appears .
C. Chagla and D. N. Mukherjee, for the appellant in all the appeals .
A number of business activities were mentioned in those clauses.
To develop the resources of the same property by building, reclaiming, clearing, draining, and otherwise improving framing and planting on any terms or system that may be companysidered advisable.
The Judgment of the Court was delivered by Khanna j. This judgment would dispose of civil appeals No.
Clauses 4, 5 and 13 of the lease deed were as under The Lessee shall have the option to erect, rebuilt, remodel and reconstruct and repair the existing structures upon the demised premises from time to time during the term of these presents at its own companyts in a sub stantial and workmanlike manner with good material of the several kinds in accordance with the plans elevations sanctions and specifications according to the choice of the Lessee and whenever necessary to get such plans sanctioned by the Corporation of Calcutta under the supervision of a first class Engineer to he elected by the Lessee on numberice to the Lessors and shall spend upon such works such sum or sums as the Lessee may in its absolute discretion think fit and proper but the entire total sum or sums so to be expended by the Lessee as aforesaid shall number be less than Rupees Five Lacs and the same shall be spent within the period of five years from date of these presents.
