TINSUKIA DEVELOPMENT CORPORATION LTD Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF CALCUTTA
TINSUKIA DEVELOPMENT CORPORATION LTD
COMMISSIONER OF INCOME-TAX
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Dipak Kumar Sen, J. -
(1.)At the instance of Tinsukia Development Corporation Ltd., the assessee, the Tribunal has been directed by this court under Section 256(2) of the I.T. Act, 1961, to refer the following questions of law :
" (1) Whether in view of the objects for which the assessee-company was formed and/or the activities of its predecessors-in-title and itself in respect of the Khiraj lease under the Government of Assam the conclusion of the Tribunal that the income from such leasehold properties converted into residential and trading sites, is assessable under the head " House Property " is sustainable in law ? (2) Whether, on the facts and in the circumstances of the case, and on an interpretation of the various leases and sub-leases and indentures, the entire income from pucca building should have been assessed under Section 9 of the Indian Income-tax Act, 1922, or Section 22 of the new Act ? (3) Whether, on the facts and in the circumstances of the case, the temporary structures are buildings within the meaning ,of Section 9 of the Indian Income-tax Act, 1922, and the income therefrom is liable to be assessed as owners of property under Section 9 of the Indian Income-tax Act, 1922, or Section 22 of the new Act ? "
(2.)The relevant facts which have been found or admitted as will appear from the statement of the case and annexures thereto may be shortly noted as follows : The assessment year involved is 1960-61, the relevant accounting year having ended on the 31st March, 1960. The assessee is a limited company. Its objects are contained in its memorandum of association which has been made a part of the statement of the case. Certain lands in the town of Tinsukia had been demised on lease by the Deputy Commissioner of Lakhimpur to one Senairam Doongarmull in 1934. The said leases were in the form known as " Khiraj Lease " prevalent in the State of Assam in respect of town lands.
(3.)It is not disputed that Tinsukia Development Corporation Ltd., the assessee, came to enjoy the rights of Senairam Doongarmull, the lessee, under the said leases. The assessee put up bustees on the land consisting of structures with no foundation but with light plinths or floor and with walls made of planks of unseasoned indigenous wood or corrugated sheets fixed on bamboo frames or indigenous logs of wood with corrugated sheet roof.
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