The reference arose out of the following facts The appel lant, M s Gotan Lime Syndicate, hereinafter referred to as the assessee, is a registered firm and carries on the business of manufacturing lime from lime stone.
96,000 paid by the assessee during each of the relevant accounting,, years was rightly allowed as a revenue deduction in companyputing the business profits of the assessee companypany.
By an indenture dated March 4, 1949, the assessee was granted the right to excavate lime stone in certain area at Gotan and Tunkaliyan, subject to certain companyditions.
The lease was extended from time to time by the Government Sup.
Appeal from the judgment and order dated October 9, 1963 of the Rajasthan High Court in D. B. Civil Income tax Reference No.
CI/66 8 for short periods.
V. Viswanatha Sastri, J. B. Dadachanji, for interveners Nos.
1 and 2.
The proposal Was to divide the lime stone quarries in Jodhpur Division in blocks of 5 sq.
of lime stone.
Lease agreement may be got executed by them at an early date and the arrears recovered.
A. Palkhivala, T. A. Ramachandran and J. B. Dadachanji for the appellant.
The last letter dated December 17, 1952, extending the lease was in the following terms In companytinuation to this office letter cited above, Government have been pleased to companyvey extension up to the 31st March, 1953, or till the finalisation of the proposals for leasing out the area whichever may be shorter, with the clear understanding that you will have to vacate the area, when you may be asked to do so, and will have numberclaim whatsoever over the area after it By letter dated December 1, 1953, the Government intimated to.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The Government in this letter further stated as follows As regards the payment of arrears by M s Gotan Lime Syndicate for the period between 30 7 52, and the date the new lease is given effect to, it has been decided that they may pay Rs.
It further appears that the assessee never executed any lease but companytinued,to work the lime deposits and the payments to be made were finalised by letter dated November 30, 1959 from the Mining Engineer, Jodhpur, to the assesee.
K. Daphtary, Attorney General, S. T. Desai, R. Ganapathy Iyer, R. N. Sachthey and B. R. G. K. A char, for the respondent.
miles of lime deposits to the assessee.
miles each and the dead rent was to be charged at Rs.
the sum of Rs.
/1/ per md.
The new rules may be incorporated in the Mines Mineral Concession Rules for Rajasthan.
The Judgment of the Court was delivered by Sikri, J. These three appeals are directed against the judg ment of the Rajasthan High Court in a companysolidated reference made to it by the Income Tax Appellate Tribunal, Bombay Branch, under S. 66 1 of the Indian Income Tax Act, 1922 hereinafter referred to as the Act .
10/ per acre while royalty was to be charged at Re.
It was further companytemplated that the period of lease will be for five years with option to renewal for another five years, and the minimum area to be granted to each party would be 10 sq.
miles and maximum 30 sq.
96,000/ Rupees Ninety six thousand per year which has also been agreed to by them before the Chief Minister Industries on the basis of dead rent under the new proposals for 15 sq.
692 to 694 of 1964.
M. Tiwari, .S. S. Khanduja and Ganpat Rai, for Intervener No.
miles at Rs.
The question referred to by the Appellate Tribunal is as follows whether on the facts and in the circumstances of the case.
miles and the other terms and companyditions would be generally the same as were in practice in such cases.
10/ per acre.
73 of 1961.
