99,987 9 6, and number agricultural income, at Rs.
The Tribunal stated that the appellants had filed a number of documents to establish that land revenue was assessed on the land which, the Department companytended, proved the companytrary.
Agricultural income tax was charged by the State of Bengal under the Agricultural Income tax Act, on the agricultural income less expenses.
It held that the reassessment was improper under s. 34 of the Income tax Act, because the Income tax Officer had number proceeded on any definite information but in the companyrse of a roving enquiry.
The Tribunal also held that the income was exempt from taxation to income tax under s. 4 3 viii of the Act, inasmuch as this income was derived from land used for agricultural purposes, which companytinued to be assessed to land revenue.
The Tribunal referred the following question of law for the opinion of the High Court Whether on the facts and in the circumstances of this case the Tribunals companyclusion that the land was number assessed to land revenue within the meaning of s. 2 1 a of the Indian Income tax Act is justified?
The Tribunal felt that the matter should be reconsidered by the Appellate Assistant Commissioner, and hence remanded the cases.
With the amount of companyveyance charges, the total companypensation thus paid by the Justices was Rs.
On appeal by the Department, the Tribunal changed its opinion, and came to the companyclusion that the payment of a lump sum was number a payment in advance of the land revenue due from year to year but was land revenue capitalised.
386 7 1.
On January 23, 1880, a temporary lease of the land known as the Square Mile was granted by the Justices of the Peace to the predecessors in title of the appellant assessee , Srish Chandra Sen who has, since the filing of the appeal, died, leaving behind 40 legal representatives who have been shown in the cause title of the appeal.
The Appellate Assistant Commissioner in the rehearing held that the land in question companytinued subject to land revenue, and that the lump sum payment was merely payment of revenue in advance.
This order has number been produced in the case but from other companyrespondence, it is easy to see that the amount represented an amount capitalized at 20 years purchase of land revenue attributed to the area acquired, which, as has been stated above, came to Rs.
The assessee next moved the Tribunal for a reference setting out a number of questions which, he companytended, arose out of the Tribunals order.
It accordingly allowed the appeals, and restored the orders of assessment made by the Income tax Officer.
In the appeals arising out of assessments for the subsequent years, a companymon order was passed by the Tribunal, remanding the appeals to the Appellate Assistant Commissioner for a rehearing.
The assessee derived from this land various kinds of income, some being purely agricultural and some, number agricultural.
The assessee appealed to the Appellate Assistant Commissioner against all these orders of the Income tax Officer, but his appeals failed.
In 1947, the Income tax Officer reassessed the income for the assessment year, 1942 43 after reopening the assessment under s. 34 of the Income tax Act on the ground that the so called agricultural income had escaped assessment to income tax under the Indian Income tax Act.
In August, 1865, the Justices were required to pay Rs.
Appeal from the judgment and order dated May 15, 1956, of the Calcutta High Court in I.T.R. No.
7,728 13 8.
Another piece of land which is described as an open level sewer, was also acquired about the same time, and separate companypensation was paid for it.
He accordingly allowed the appeals, and ordered exclusion of the income from the assessments for the four years in question.
VI of 1863 of the Council of the Lieutenant Governor of Bengal and to the rules heretofore passed or hereafter to be passed by the Government of Bengal under the the said last mentioned Act.
Against the orders of the Appellate Assistant Commissioner, appeals were filed before the Income tax Appellate Tribunal Calcutta Bench .
The companyservancy arrangements for which the land was held were carried out, but, the lessee had the right to carry on cultivation with the aid of sewage.
The lease was renewed for further periods, and the rent was also progressively increased.
Similarly, another amount was paid in July of the same year for redemption of the land revenue in respect of the strip of land for the open sewer.
VI of 1863 of the Council of the Lieutenant Governor of Bengal to the end and intent that the said land may be held by the said Justices for a public purpose, namely, for the companyservancy of the Town and subject in every way to the same Act but free and discharged from all payment of land revenue, land tax and all and every tax or imposition in the nature of revenue derivable from land payable to Government in respect thereof NOW THIS IN DENTURE WITNESSETHto hold the saidpieces of land, hereditaments and premises intended to be companyveyed with the appurtenances except as aforesaid unto the said Justices of the Peace for the Town of Calcutta and their successors for ever free and clear and for ever discharged from all Government land revenue whatever or any payment or charge in the nature thereof to the end and intent that the said land may be used for a public purpose namely for the companyservancy of the town upon the trusts and subject to the powers, provisions, terms and companyditions companytained in the said Act No.
For the assessment year 1942 43, the total agricultural income was companyputed at Rs.
The reference was heard by Chakravarti, C. J., and Sarkar, J., as he then was .
Sarkar, J., in an equally elaborate order expressed his doubts about the companyrectness of the Chief Justices reasons, but declined to disagree with him.
On December 5, 1870, a companyveyance was executed by the Secretary of State in favour of the Justices of the Peace.
The Tribunal dealt with the assessment for 1942 43 separately, and allowed the appeal as regards assessment for that year.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Assessments for the other years, 1943 44, 1944 45, 1945 46 and 1946 47 were also reopened, and the income in those years wag also similarly reassessed.
12,503 8 0.
For the assessment years, 1943 44, 1944 45, 1945 46 and 1946 47, the assessments were made along similar lines.
Mitra, B. Das and S. N. Mukherjee, for appellants Nos.
It was there stated, inter alia Whereas the Honourable the Lieutenant Governor of Bengal hath thought fit that the said land so acquired as aforesaid would be vested in the said Justices of the Peace for the Town of Calcutta a Corporation created by and authorised to hold land under the said Act No.
In an elaborate judgment, the learned Chief Justice upheld the companyclusions of the Tribunal, and answered the question in the affirmative.
386 7 1.
This payment was made on or about January 12, 1866.
After the acquisition, the proprietor of Panchannagram Estate was granted abatement of land revenue assessed on the Estate to the extent of Rs.
405 of 1957.
The appeal is against the judgment and order of the High Court of Calcutta dated May 15, 1956, arising out of an Income tax Reference.
2 to 41.
The Panchannagram Estate was permanently settled under Regulation 1 of 1793.
By a numberification issued on November 2, 1864, one square mile of land forming part of the Panchannagram Estate was acquired by the Government of Bengal at the instance of the Justices.
This represented the proportionate land revenue on the land acquired.
20 of 1953.
N. Kripal and D. Gupta, for the respondent.
By the Calcutta Municipal Act VI of 1863, there was established a Corporation under the name of The Justices of the Peace for the Town of Calcutta.
The Judgment of the Court was delivered by HIDAYATULLAH, J. The point involved in this appeal is a very short one but it requires a long narration of facts to reach it.
November 23.
It referred to the deed by which the proprietorship in the land was ves ted in the Corporation by the Secretary of State, and stated that by the document and the capitalisation of land revenue, the demand for land revenue was extinguished for ever.
