1944 (12) TMI 2

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..... osh JUDGMENT Manohar Lall, J. This is a reference under Section 66(1) of the Indian Income-tax Act, 1922, by the Appellate Tribunal, Calcutta Bench, asking the opinion of this Court upon the following question: "Whether the proportionate amount of the revenue paid from the estate, to which appertain the coal lands from which the royalties arose, or a reasonable portion of it, ought to ha .....

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..... from coal fields could not have been one of the determining factors in assessing the jama for all times, and as the jama fixed by the Government was dependent on the income of these estates existing at that time, so the deduction claimed is not permissible under Section 12(2) of the Act. He adds that "this item of expense not having been incurred solely for the purpose of making or earning su .....

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..... that the tax is not on the gross income, that the non-agricultural income of an estate is the income after deducting the revenue. We do not see why the apportionment was not made. We therefore, direct that the proportionate amount of the revenue paid may be deducted in computing the income from the non-agricultural sources". At the instance of the Commissioner of Income-tax, Bihar and Orissa .....

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..... erived from the zemindary, his income, profits and gains from that source should be computed after making proper allowance in respect of the jama assessed and paid". The assessee is sought to be assessed in respect of the non-agricultural income derived from the coal fields which are situated within his zemindary. The assessee is, therefore, entitled to claim a deduction for the jama which s .....

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..... for the sum paid on account of land revenue in respect of the property. He argued that no such reference is to be found in Section 10 or in Section 12. This argument is wholly inadmissible in view of the decision of their Lordships of the Judicial Committee. I would, therefore, answer the question referred to us in these words: The assessee is entitled to claim a deduction on account of the jam .....

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