The premium was made payable as follows Rs.
11,250/ received by the assessee during the year of account is revenue or capital receipt.
1,000/ per month to be paid on or before the last day of each month, making in all Rs.
Appeal from the judgment and order dated March 22, 1960, of the Assam High Court in Income tax Reference No.
12,000/ per year, and the balance of Rs.
the total of the instalments of premium and rent, was number higher than the profits he was getting before the lease and that was an indication that what was rent really was split up into premium and rent for ulterior purposes.
42,000/ on or before December 31 of each year.
1,80,000/in 16 half yearly instalments of Rs.
54,000/ to be paid by the lessee to the lessor.
Thirdly, it was companytended that the income the lessor was getting under the lease after 1950, i.e., after the execution of the lease deed, viz.,
54,000/ was payable as follows Rs.
11,250/ paid towards the premium in the relevant accounting year as a revenue receipt of the assessee.
At the instance of the assessee, the Tribunal referred the following question to the High Court under s. 66 1 of the Income tax Act, 1922, herein after called the Act Whether on the facts and in the circumstances of the case and upon the companystruction of the terms of the lease, dated 31st March 1950, the sum of Rs.
7 of 1959.
CIVIL APPELLATE JURISDICTIONCiVil Appeal No.
The annual rent of Rs.
On February 25, 1957, for the assessment year 1952 53, the Income tax Officer made the assessment treating the instalment of Rs.
11,250/ on or before January 31 and July 31 of each year.
On further appeal, the Income tax Appellate Tribunal also held that the premium was really the rent payable under the lease deed and, therefore, it was chargeable to income tax.
The lease was executed in companysideration of a sum of Rs.
On appeal, the Appellate Assistant Commissioner companyfirmed the order of the Income tax Officer.
45,000/ to be paid in one lump sum at the time of the execution of the lease deed and the balance of Rs.
150 of 1964.
Sampat Ayyangar and J.P. Goyal, for the respondent.
2,25,000/as and by way of premium and an annual rent of Rs.
D. Karkhanis and R.N. Sachthey, for the appellant.
The Judgment of the Court was delivered by Subba Rao, J. By a registered lease deed dated March 31, 1950, the assessee company, respondent herein, leased out two tea estates named Panbari Tea Estate and Barchola Tea Estate, along with machinery and buildings owned and held by it, in Darrang, in the State of Assam, to a firm named Messrs. Hiralal Ramdas for a period of ten years companymencing from January 1, 1950.
