Dipak Kumar Sen, J. - (1.) This reference arises out of the assessment of Assam Oil Company Ltd., Digboi, Assam, in respect of the assessment year 1962-63, the corresponding previous year being the calendar year 1961. The facts found as appearing from the statement of the case and the annexures thereto can be briefly narrated as follows :
(2.) The assessee carries on the business of sale of petroleum and oil products produced by refining of crude oil, obtained, inter alia, by mining. Under a lease known as Digboi Mining Lease Nos. 1 and 2 executed by the then Province of Assam in favour of the assessee on the 6th September, 1943, the assessee obtained a lease of the mines, beds, veins and seams of natural petroleum including natural gas situated in or under four square miles of land, particularly described in the deed of lease for a period of 25 years commencing from the 1st January, 1942. This lease was in renewal of similar earlier leases starting from the 26th November, 1892. The relevant parts of the lease may be noted. The preamble of the lease states as follows: "............in consideration of the rents and royalties, covenants and agreements by and in these presents and Schedule hereunder written reserved and contained and on the part of the lessee to be paid, observed and performed the Governor hereby grants and demises unto the lessee all those mines, beds, veins and seams of natural petroleum including natural gas (hereinafter and in the said Schedule referred to as 'the said minerals') situate, lying and being in or under the lands which are referred to in Part I of the said Schedule together with the liberties, powers and privileges to be exercised or enjoyed in connection therewith which are mentioned in Part II of the said Schedule."
(3.) The liberties, powers and privileges granted by the lease in favour of the assessee appear in Part II of the deed of lease and includes liberty and power to enter upon the lands forming the subject-matter of the lease and to search for, win, work, get, raise (convert) and carry away the said minerals, liberty and power are also granted in favour of the assessee to sink, drive and use in the said land, oil-wells, pits, shafts as also to erect, construct and maintain and use machinery, plant, furnaces, workshops, etc., and to lay pipelines and other lines above or below ground.;