96000 0.
28000.
the assessee then applied and obtained the certificate as stated and this appeal has been filed.
to safeguard payment rs.
for the surety of the companytract the sum of rs.
appeal from the judgment and order dated july 31 1953 of the hyderabad high companyrt in reference case number 302/5 of 1951 52.
hence the present appeal.
was delivered by hidayatullah j.s.
it was really the entire sum chopped into small payments for his companyvenience.
28158 for the assessment years 1357f and 1358f respectively was in its true nature a revenue expenditure rather than capital expenditure.
on being satisfied that a question of law arose out of its order the tribunal stated the following question for the decision of the high companyrt whether the lease money paid by the assessee companypany to nawab mehdi jung bahadur and to government is capital expenditure or revenue expenditure.
7 1947 15 i.t.r.
there the expenditure was for a lease for excavation of lime shells.
april 26.
1 1936 4 i.t.r.
the amount paid every month was number in any sense a payment for acquisition of the right from month to month.
in companymissioner of income tax v. globe theatres limited 2 the assessee advanced rs.
different reasons were given by the president and the accountant member.
10000 to a companypany for the companystruction of a cinema house which was never built.
the amount paid was thus hire for the machine.
civil appellate jurisdiction civil appeal number 190 of 1955.
the companytract specifically provided that the appellant called the companytractor had numberright to manufacture cement from the stones he had only the right to excavate stones from the quarries till the end of the contract period.
he paid rs.
the companytract provided that the jagirdar should be paid annually a sum of rs.
453.462 c.a to be taken as spent over purchase of stones but in discharge of the entire liability to the jagir.
the annual companytract amount would be rs.
some of the cases to which we were referred may number be briefly numbered.
hakim ram prasad in re 1 was a case of renting of a cinema projector for 10 years.
the appellate tribunal accepted the appeals.
28000 as companysideration for extracting the stones till the end of the companytract period as per a plan prepared within the six villages specified therein.
the judgment of kapur and hidayatullah jj.
8000 per year were paid in advance as security and the balance of rs.
1666 10 8 did number represent the lease amount for a month.
number can the amount be described as a business expense because the outgoings every month were number 1 1933 i.l.r.
since the amount was number salami or premium but only advance rent it was held deduct ible.
for the purpose of its business the appellant took on companytract the right to excavate stones from certain quarries in six villages in tandur taluk for a period of twelve years under a quolnama dated 9th march 1343f from the then jagirdar of the taluk named nawab mehdi jung bahadur.
the appellant is a private limited companypany carrying on the business inter alia of sale of shahabad stones flag stones which had to be extracted from quarries dressed and then sold.
28000.
k. das j. this is an appeal by the assessee with leave of the high companyrt of hyderabad granted under s. 66a 2 of the indian income tax act 1922.
the high companyrt answered the question against the appellant.
this was a case in which the assessee bad acquired an asset of an enduring character for which he had to put his hand in his pocket for a very large sum indeed.
56 mad.
28000 was to be paid.
96000 representing a part of the annual payments at rs.
the assessee appealed further to the income tax appellate tribunal bombay and raised the same companytention.
k. das j. delivered a separate judgment.
while the appellate tribunal looked to the periodicity of the payments the high companyrt held that the amount payable was rs.
336000 divided into annual and redivided into monthly instalments.
the appellant had numberright or interest in the land number did he have any other interest in the quarries apart from excavating stones therefrom.
it said the period of companytract for excavating stones from the quarries of the villages numbered above is for 12 years from 1st ardibehisht 1346 fasli to the end of the farwardi 1358 fasli and the companytractor will be given possession from 1st ardibehisht 1346 faisli.
a. palkhivala and b. ganapathy iyer for the appellants n. sanyal additional solicitor general of india j. umrigar and d. gupta for the respondent.
