After reciting the prefatory clauses, it was stated in the deed WHEREAS it was agreed inter alia that the Purchaser should pay to the Vendor the sum of Rupees twenty five thousand for trouble and expenses in obtaining the leases and agreements dated the thirtieth day of September one thousand nine hundred and thirty four hereinbefore recited and hereinafter expressed to be hereby transferred and Whereas the Purchaser hath paid to the Vendor the said sum of rupees twenty five thousand as the Vendor doth hereby acknowledge NOW THIS INDENTURE WITNESSETH that in company.
By el.
The Income tax Officer, Companies District 1, Calcutta, included this amount in the total assessable income of the appellants in the assessment year 1946 47.
25,000 for trouble and expenses in obtaining the leases and agreements and for further payment under several companyenants which will be presently set out, the appellants companyveyed the rights vested in them subject to certain reservations.
The principal objects of incorporation of the appellants were to carry on the business of manufacturing cement and lime and sale of limestone and the appellants were formed with the object of acquiring the rights and companycessions of the Karanpura Company.
By their Memorandum of Association, the appellants were authorised to sell or dispose of the undertakings or any part thereof as they thought fit, and to sell, lease, mortgage, dispose of, turn to account or otherwise deal with all or any part of their property and rights and in pursuance of these objects the rights and companycessions of the Karanpura Company were acquired and extension of leases and companycessions were obtained and were transferred to the Associated Cement Ltd. The appellants were therefore carrying on in the year of account 1944 45 the business for which they were incorporated.
There was also the companyenant authorising the Associated Cement Ltd. to terminate the deed in the event of limestone in the land companyprised in the leases being exhausted.
By cl.
8 , the Associated Cement Ltd. undertook number to do any acts or omissions causing the leases and agreements to be determined or the rights thereunder to be prejudiced.
1 , 3 and 4 subject to the minimum prescribed by el.
By cl.
By clause 5 , provision was made for minimum payment in the event of the aggregate under cis.
Appeal by special leave from the judgment and order dated December 22/23, 1955, of the Calcutta High Court in I.T.R. No.
7 the Associated Cement Ltd. undertook number to remove or use or allow any one to raise work, remove or use stone or clay in the lands.
This order was companyfirmed in appeal by the Appellate Assistant Commissioner and by the Income tax Appellate Tribunal.
On the same date, the appellants entered into two agreements, one with Maharaja Pratap Narain Uday Nath Shah Deo which is called the ,bauxite option agreement thereby acquiring the first option to take a lease or leases of any area or areas of bauxite deposits in certain villages, and another from the said Maharaja for the first option to take a lease or leases of limestone beds in the Tori District.
By el.
for every ton of cement manufactured from the limestone won from the lands and sold by el.
3 , the Associated Cement Ltd. agreed to pay half the profits which they made by selling Fluxstone to the Tata Iron Steel Co., or to any other person and by el.
9 , rights of other persons under leases and agreements in lands number companytaining limestone were number to be affected.
Hardayal Hardy and D. Gupta, for the respondent.
84 of 1958.
January 17.
At the instance of the appellants, the Tribunal referred the following question with another number material for this appeal to the High Court of Judicature at Calcutta Whether on a proper companystruction of the Deed of Assignment dated 7th of May, 1935, and on the facts and in the circumstances of this case, the Tribunal was right in holding that, the sum of Rs.
77,820 represented a receipt of a revenue nature in the hands of the Applicant and assessable as such The following facts were held proved by the Tribunal.
By el.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
10 , the right of the appellants to utilise clay and shale lying within the areas number companytaining limestone except for the purpose of manufacturing cement was retained, There were certain exceptions to this and the ninth clause whereby the Associated Cement Ltd. were entitled to excavate, use or remove all kinds of clays in and from the areas within the boundary lines marked in the plan and they were also authorised to make permanent structures and use certain strips of lands.
C. Chatterjee, D. P. Pal and D. N. Mukherjee for the appellant.
or otherwise deal with clay and bauxite.
By cl.
On September 30, 1934, the appellants acquired the limestone and surface rights in respect of limestone beds in village Umedanda for 95 years from Maharaja Pratap Narain Uday Nath Shah Deo and Maharaj Kumar Raj Kishore Nath Shah Deo.
1 they agreed to pay 0 13 As.
In the year of account June 1, 1944, to May 31, 1945, the appellants received from the Associated Cement Ltd. under the first companyenant of the deed, Rs.
The period in each of the three leases was thirty years.
Clauses 2 , 4 , 7 , 8 and 9 were in the nature of restrictive companyenants.
25,000 was paid for trouble and expenses in obtaining the leases and agreements and additional payments were to be made under cls.
The Judgment of the Court was delivered by SHAH, J. Messrs. National Cement Mines Industries Ltd. hereinafter referred to as the appellants are a public limited companypany incorporated to carry on the business of cement and lime manufacture and also of limestone supply and for the purposes of such businesses to acquire rights and companycessions pertaining to limestone, companyl and surface lands from the Dewar khand Karanpura Mines and Industries Ltd. and also to work mines or quarries and to find, win, get, work, etc.
The deed then proceeds to set out the description of the various leases and companycessions and agreements and the companyenants which the Associated Cement Ltd. undertook in favour of the appellants.
sary to exercise the powers and privileges in respect of the first lease and the third from Maharaj Kumar Raj Kishore Nath Shah Deo of surface rights in respect of Hoyer village.
On March 17, 1932, the Karanpura Company companyveyed the rights and options under the three leases to the appellants.
Dewarkhand Karanpura Mines and Industries Ltd. hereinafter called the Karanpura Company had obtained three leases on November 29, 1930, first for mining limestone from Maharaja Pratap Narain Udai Nath Shah Deo from limestone beds in certain villages in Dewarkhand, second from Maharaj Kumar Nand Kishore Nath Shah Deo of the surface rights neces.
77,820 being the amount companyputed at the rate of 0 13 As.
24 of 1953.
The appellants undoubtedly did number part with all their rights in favour of the Associated Cement Ltd. by this deed dated May 7, 1935.
6 the Associated Cement Ltd. agreed to pay rent stipulated under the original leases and agreements and also undertook to keep indemnified the appellants from and against all proceedings, companyts, claims and expenses on account of any omission to pay the rent royalty or payments or any breach of any of the companyenants agreements and the leases.
4 , they agreed to pay half the royalty received from the Tata Iron Steel Company for the right to quarry and remove fluxstone from the lands.
By this deed, for a present companysideration of Rs.
per ton of cement manufactured from limestone won from the lands and sold by the companypany.
By a fourth agreement also dated September 30,1934, between the Karanpura Company, Maharaja Pratap Narain Udai Nath Shah Deo acting with the companysent of Maharaj Kumars Raj Kishore Nath Shah Deo and Nand Kishore Nath Shah Deo, the royalties reserved under the original deeds dated November 29, 1930, were reduced and the periods of the leases were extended to 99 years from the date of the original leases, By deed dated May 7,1935, the appellants companyveyed to Dewarkhand Cement Company Ltd. which later came to be known as Associated Cement Ltd. and will be referred to hereinafter by that name the benefits of the four leases and the two agreements for the unexpired periods.
sideration of the companyenants on the part of the Purchaser hereinafter companytained the Vendor hereby grants assigns and transfers unto the Purchaser and the Karanpura Company at the request and by the direction of the Vendor hereby grants assigns transfers and companyfirms unto the Purchaser.
