- (1.) These are six consolidated appeals arising out of a common judgment and six separate orders of the High court of Judicature at Patna with certificates under S.66A (2) of the Indian Income Tax Act and they raise common questions of law: (1) Whether in the facts and circumstances of the case, the receipts of Bankura forest lease are capital receipts or, in the alternative, constitute agricultural Income (2) Whether in the facts and circumstances of the case, the receipts from Kharagpur forest are agricultural Income
(2.) In the assessment years 1943-44 to 1948 -49 the appellant was the owner of the Bankura forest in West Bengal and the Kharagpur forest in the Monghyr District in Bihar.
(3.) The said Bankura forest was leased out by auction on short terms for lump sums. The terms of the lease were not produced, but it was stated that according to the terms of the lease the lessee was entitled to cut down and remove all sal trees but not those which were more than three feet in girth and three feet from the ground and all other jungle trees other than fruit bearing trees and valuable timber trees. The lessee was further entitled to cut stumps not higher than five feet over ground. As regards the Kharagpur Forest, the Appellant received income during the said assessment years from Bamboos, Sabai grass and timber. The officers concerned with the assessment of the appellant for these assessment years, by assessment orders made under S. 23 (3) of the Indian Income Tax Act, respectively on March 15, 1944, March 9, 1945, March 27, 1946, March 12, 1947, March 13, 1948 and February 24, 1946 rejected the contentions of the Appellant that the two sums of Rs. 7,436 and Rs. 11,468 received during the year of account 1349 Fasli, of Rs. 23,581 and Rs. 17,027 received during the year of account 1350 Fasli, of Rs. 20,582 and Rs. 59,514 received during the year of account 1351 Fasli, of Rs. 14,750 and Rs. 98,969 received during the year of account 1352 Fasli, of Rs. 13,836 and Rs. 1,17,173, received during the year of account 1353 Fasli and of Rs. 22,211 and Rs. 73,449 received during the year of account 1354 Fasli, by the appellant from his forests in Bankura in West Bengal and Kharagpur forest in Bihar respectively were not taxable as they were(i) capital receipts and/or (ii) agricultural income.;