DIPAK KUMAR SEN, J. - (1.) PREMCHAND jute Mills Ltd., the assessee, owned and ran a jute mill known as " Premchand jute Mills " situate at Ghengail, Howrah. Under a deed of lease executed by the assessee, the said jute mill was let out for a period of five years w.e.f. November 12, 1958, with option to the lessee to have the lease renewed for another five years at a rent of Rs. 32,000 per month.
(2.) AFTER the expiry of the initial period of five years, the lessee exercised its option in 1963 and the lease continued up to November 11, 1968. After the expiry of the said lease, the assessee did not resume its business in the mill but entered into an agreement to sell the mill. Delivery of possession of the mill was given to the intending purchaser under a written agreement. The shareholders of the assessee, however, did not approve of the proposed sale whereupon the assessee recovered possession of the said mill from the intending purchaser.
(3.) THEREAFTER , the assessee executed another deed on July 14, 1971, under which the said jute mill was again let out to another lessee for a period of 30 years w.e.f. May 1, 1969, with option to the lessee to have the said lease renewed for another period of 20 years at a stipulated rent of Rs. 28,000 per month for the first and the second year, Rs. 30,000 per month for the third and the fourth year and, thereafter, Rs. 32,000 per month for the rest of the succeeding term.;