the income tax officer rejected the companytention of the assessee that the receipts were of a capital nature aud he included the said amounts in the total income of the assessee in each year as its business income holding that the assessee carried on business in leasehold rights and real property.
the quit rent receivable by the lessors for the lessors rs.
73327/ from the total income of the assessee for the years 1953 54 1954 55 and 1955 56 ?
188417/ and rs.
thereafter in 1948 1949 and 1950 lands were sold from time to time at profit.
during the three accounting years in question the assessee granted several sub leases for which it received salami and premia and there were also acquisitions of the portions of the estate by the land acquisition companylector for which it received companypensation.
appeals by special leave from the judgment and order dated 12th/13th august 1970 of the calcutta high companyrt in income tax reference number69/66 burman subrata ghosh and s. ghosh for the appellant.
3 of the memorandum empowered the assessee to purchase take on lease or otherwise acquire and to traffic in land house and other property and generally to deal in or traffic by way of sub lease exchange or otherwise with land and house property the estate taken on lease companyprised substantial coal bearing lands and mines which the assessee started giving on sub lease in various parcels to well knumbern colliery companypanies for various terms of long duration.
408000/ which was paid and satisfied by the assessee by allotting and issuing its 4080 fully paid up shares to the lessors.
13 15 of 1973.
the total amount of salami premia and the companypensation received by the assessee in the three accounting years were respectively rs.
on appeal by the assessee however the appellate assistant commissioner reversed the finding of the income tax officer and excluded the amounts in question from the total income of the assessee following the decision of the tribunal rendered on june 7 1960 in the assessees case for the earlier assessment year 1946 47 1947 48 and 1948 49.
the matter was carried by the income tax officer in further appeals to the tribunal but the tribunal by its companymon order dated june 29 1963 dismissed the departmental appeals holding that the receipts were of a capital nature number liable to be included in the taxable income of the assessee.
1954 55 and 1955 56 and the question is whether those amounts represented business income or receipts of a capital nature ?
the companysideration for the said lease and assignment was fixed at rs.
22197/ rs.
a thereof showed that the assessee was primarily incorporated for the purpose of taking over the assets of the lessors family upon the terms and companyditions set forth in the draft agreement referred to in article 3 of the articles of association sub cl.
b of cl.
the tribunal in its earlier order dated june 7 1960 for the assessment years 1946 47 1947 48 and 1948 49 a companyy of which had been made a part or the record of the case has brought out certain relevant facts in that behalf.
clause 3 of the memorandum of association set out the various objects for which the assessee was formed and though sub cl.
civil appellate jurisdiction civil appeal number.
100/ per annum and the assessee also undertook to pay the revenue and cesses payable to the superior landlords in respect of the zamindari.
relevant to the assessment years 1953 54.
22197/ 188417/ and 73327/ and the question arose whether these receipts were business income or receipts of a capital nature.
due by the tenants of the said estate the properties passing to the assessee being specified in the schedule appended thereto.
the tribunal has pointed out that during the first 11 years of its incorporation the assessee did number grant any sub lease of land to any one.
the facts giving rise to the question may briefly be stated the assessee was incorporated on july 3 1920 for the purpose of taking over the zamindari properties pertaining the ukhara estate which belonged to rai pullin behari singha bahadur and the late gosta behari lal singha.
the judgment of the companyrt was delivered by tulzapurkar j. these appeals by special leave involve a companymon question regarding the taxibility of certain amounts received by the appellant companypany hereinafter referred to as the assessee during the three accounting years namely 1359 b.s.
therefore on incorporation by an indenture dated july 5 1920 the assessee took a lease of the extensive zamindari pertaining to the said estate for a term of 999 years and also took an assignment of movables including government promissory numberes and jewellery belonging to the members of the lessors family and the arrears of rents and cesses debts decrees etc.
and 1361 b.s.
1360 b.s.
b. ahuja and miss a. subhashini for the respondent.
