9911796707
TMI Blog1936 (3) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... the trial Judge for road cess and mine cess but has dismissed the Plaintiffs' claim for income tax. Hence these two second appeals one (S.A. No. 856) by the defendants, and the other (S.A. No. 1003) by the Plaintiffs. 2. The point for d etermination in the two appeals is whether under the terms of the lease the Plaintiffs are entitled to recover (a) Road cess, (b) Mine cess, (c) Inco me tax, paid by them on the royalties reserved in the lease. 3. The relevant clauses in the lease are these:- (a) The lessee shall pay the royalties reserved in the lease at the time and manner appointed in that behalf and shall also pay and discharge all taxes, rates, assessments and imposition whatever, being in the nature of public dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these impositions do not come within the covenants in the lease as they are not charged upon the mines but are charged upon the landlord in respect of the mines. 7. Now, what is the difference between an imposition upon the mines and an imposition in r espect of the mines? All impositions are ultimately charged to the landlord or the tenant or both. Mr. Bose's contention however is that when parties to a covenant use the words imposed, assessed or charged upon the premises the meaning of the words is the sense in which the words are used in the statute. In support of his contention he invited our attention to the following passage in the judgment of BANKES. J. in East Wood v. MacNab [1914, 2 K.B. 361]: When parties to a covena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Plaintiffs' income from mines alone by the income tax authorities. It has been fixed not only with reference to the income from the mines but also with reference to their other sources of income- The amount claimed under this head is not therefore the amount imposed by the income tax authorities under the Income Tax Act in respect of the mines only. 11. The result therefore is that both the appeals are dismissed. The parties are directed to bear their own costs in these two appeals. Edgely, J.-[ His Lordship concluded as follows on the question of road-cess and mine-cess and then proceeded to deal with income tax.] It seems to be clear, therefore, that the liability to pay the road cess and the Mines Board of Health cess a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. Under sec. 2 (15) of the Act the expression total income means the total amount of income, profits, and gains from all sources to which this Act applies computed in the manner laid down in sec. 16, which latter section relates to exemptions and exclusions in determining the total income. Having regard to the provisions of the Income Tax Act with regard to assessment, it would in this particular case be impossible to separate any income tax which might be payable upon the mines from the total amount of income tax payable by the party concerned. The amount of the income tax payable by a person who owns mines or derives any portion of his income therefrom is not separately assessed upon the mines and the income arising therefrom but ..... X X X X Extracts X X X X X X X X Extracts X X X X
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