Jagdish Sahai, J. - (1.) THE question requiring our answer in both these cases is the same. We are, therefore, dealing with those cases in a common judgment.
(2.) IN reference No. 198 of 1965, the assessee is the Dehra Dun Tea Company Ltd., Dehra Dun, and in reference No. 199 of 1965, the assessee is the East Hope Town Estate Co. Ltd., Dehra Dun. The Dehra Dun Tea Company Ltd. was assessed to U.P. large land holdings tax on the land holding held by it for the years 1959-60, 1960-61 and 1961-62. The tax assessed in respect of the first year is Rs. 72,167, in respect of the second year Rs. 74,248, and in respect of the third year Rs. 73,356. The East Hope Town Estate Co. Ltd. was taxed to Rs. 19,346 for the year 1959-60, Rs. 19,498 for the year 1960-61 and Rs. 20,080 for the year 1961-62. Their assessments were not disturbed up to the stage of appeal before the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal", which while dismissing the second appeal filed by the assessee aforesaid affirmed the appellate orders of the Appellate Assistant Commissioner and thus of the Income-tax Officer.
(3.) THE assessee-companies mentioned above claimed as deductible expenditure under Section 10(2)(xv) of the Indian Income-tax Act, 1922 (hereinafter referred to as " the Act "), the sums that they had paid as large land holdings tax to the State of Uttar Pradesh, referred to above. Neither the Income-tax Officer nor the Appellate Assistant Commissioner nor the Tribunal accepted this plea of the two assessees mentioned above. After the dismissal of the appeal by the Tribunal the two income-tax references mentioned above were made by the Tribunal at the instance of the assessee-companies.;