Clause 2 of the lease deed stated that the Lessee shall deposit with the Lessor by way of the guarantee for due performance of this lease deed for fifteen years, the amount equal to the rent of lease of land for the full period of lease which will be adjustable against rent of every month.
DELIVERED BY P.BHARUCHA, J. Bharucha, J. These appeals have been referred to a Constitution Bench to resolve the apparent companyflict between the judgments of two Benches of this Court, of three learned Judges each, in Pingle Industries Ltd. vs. Commissioner of Income tax, Hyderabad 1960 40 I.T.R. 67 and Gotan Lime Syndicate vs. Commissioner of Income tax, Rajasthan Delhi 1966 59 I.T.R. 718.
For the assessment years in question, the assessee claimed the rent amounts worked out at Rs.10,752/ per annum as revenue expenditure.
The appellant assessee obtained a lease dated 8th March, 1972 from Aditya Minerals Private Limited.
The claim of the assessee in this behalf was turned down by the authorities, the Income Tax Appellate Tribunal and, finally, by the High Court of Andhra Pradesh, against whose judgment the assessee is in appeal.
The lease deed granted to the assessee the liberty to use the land for excavation purposes and subsidiary purposes.
This entire guarantee deposit shall number carry any interest payable to the Lessee by the Lessor.
