Kirpal, J. - (1.) The only question for consideration in this appeal is whether the compensation received by the respondent, on its agricultural land being requisitioned, was exempt from the levy of income tax or not.
(2.) The respondent is a Company having tea estates in Assam. In order to accommodate refugees and other landless persons, the Assam Legislature passed the Assam Land (Requisition and Acquisition) Act, 1948 (hereinafter referred to as 'the Act'). Section 3 of this Act provided for requisitioning of land and according to Section 4 the requisitioned land could be used or dealt with in such manner as may seem expedient to the State Government. The land could also be acquired by the State Government after necessary notice. Section 7 of the Act sets-out the principles of determining compensation for acquisition or requisition of land. Sub-section (3) of Section 7 provides that where any land is requisitioned then every person interested in such land is to be paid such compensation as may be agreed upon in writing between the person interested and the Collector. Compensation is also payable in respect of any damage which may be done to the land during the period of requisition. The maximum amount of compensation which may be payable is also stipulated.
(3.) The respondent's land were in Singrimiari and were requisitioned under Section 3(1) of the Act in January and May, 1949. The respondent got Rs. 1,24, 638/- as compensation.;