- (1.) These appeals have been referred to a Constitution bench to resolve the apparent conflict between the judgments of two benches of this court, of three learned Judges each, in Pingle Industries Ltd. Vs. Commissioner of Income-tax, Hyderabad [ (1960 40 I. T. R. 67] and Gotan Lime Syndicate vs. Commissioner of Income tax, Rajasthan and Delhi [1966 59 I. T. R. 718].
(2.) The common question to be considered reads thus: "whether on the facts and in the circumstances of the case, the sum of Rs. 10,752. 00 paid by the assessee in the accounting year was not expenditure allowable as a deduction in computing the business profit of the assessee-Company -
(3.) The appellant-assessee obtained a lease dated 8/03/1972 from Aditya Minerals Private Limited. It was a term of the lease deed that "the Lessor will grant lease of the land more particularly described in Schedule 'a' attached to this lease deed and forming part of the same for a period of FIFTEEN YEARS from first December, One thousand nine hundred and seventy one at a monthly rent of Rs. 35. 00 (Rupees Thirty Five) only per acre. " Clause 2 of the lease deed stated "that the Lessee shall deposit with the Lessor by way of the guarantee for due performance of this lease deed for fifteen years, the amount equal to the rent of lease of land for the full period of lease which will be adjustable against rent of every month. This entire guarantee deposit shall not carry any interest payable to the Lessee by the Lessor. " The lease deed granted to the assessee the liberty "to use the land for excavation purposes and subsidiary purposes. ";