- (1.) These four appeals by special leave granted by this Court are preferred against the judgment of a Division Bench of the Andhra Pradesh High Court at Hyderabad in a case referred to it by the Income-tax Appellate Tribunal, Hyderabad Bench, under S. 66 (1) of the Indian Income-tax Act, 1922, hereinafter called the Act, in respect of assessments made on H. E. H. the Nizam of Hyderabad for the assessment years 1950-51 and 1951-52.
(2.) The Income-tax Officer, B Ward, Hyderabad-Deccan, by his orders, dated February 15, 1955, and March 31, 1956, rejected the objections raised by the assessee and assessed him to income-tax for the said two years. Against the said orders the assessee filed two appeals before the Appellate Assistant Commissioner, Hyderabad, who by his orders gave some relief in respect of the said assessments. On further appeals by the assessee, the Income-tax Appellate Tribunal, Hyderabad Branch, allowed the appeals of the assessee in part and ordered the assessments to be revised accordingly. At the instance of the assessee, the Income-tax Appellate Tribunal drew up a statement of case and referred four questions to the High Court of Andhra Pradesh for its decision. On July 4, 1961, the High Court answered some of the questions in favour of the assesse and others against him. The Commissioner of Income-tax filed two appeals to this Court, being Civil Appeals Nos. 46 and 47 of 1964, in so far as the High Courts' judgment went against the Revenue; and the assessee filed two appeals, being Civil Appeals Nos. 48 and 49 of 1964 against that part of the High Court's judgment which rejected his contentions.
(3.) To avoid prolixity and repetition we shall state the relevant facts in considering each of the questions referred to the High Court.;