Hidayatullah, J. - (1.) The point involved in this appeal is a very short one; but it requires a long narration of facts to reach it. 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.) 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." By a notification 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. Section CXII of the Municipal Act provided that the Justices might "agree with the owners of any land for the absolute purchase thereof........... for any other purpose whatever connected with the conservancy of the Town". Under Sec. CXIII, it was provided that if there was any hindrance to acquisition by private treaty, the Government of Bengal upon the representation of the Justices would compulsorily acquire the land and vest such land in the Justices on their paying compensation awarded to the proprietor. The action which was taken by the notification was under Sec. CXIII of the Municipal Act, and the acquisition was under Act, VI of 1857, an Act for the acquisition of land for public purposes.
(3.) The Panchannagram Estate was permanently settled under Regulation I of 1793. After the acquisition, the proprietor of Panchannagram Estate was granted abatement of land revenue assessed on the Estate to the extent of Rs. 386-7-1. This represented the proportionate land revenue on the land acquired.;