Deb, J. - (1.) This is a reference under Section 66(2) of the Indian Income-tax Act, 1922. The assessee is a company having a tea estate in Assam. The relevant assessment year is 1958-59.
(2.) The Assam Legislature passed the Assam Land (Requisition and Acquisition) Act, 1948, in order to accommodate the refugees and other landless persons. Section 3 of that Act provides for requisitioning lands. Under Section 4 the requisitioned land may be used or dealt with in such manner as may seem expedient to the State Government. The land can also be acquired by the State Government after the necessary notice. Compensation for acquisition and requisition was payable under Section 7. Section 7(3) provides that where any land is requisitioned under Section 3, every person interested in such land is to be paid such compensation as might be agreed upon in writing between the person and the Collector and any damage done during the period of requisition. Under Section 7(4), in the case of land, included in any grant or settlement made for special cultivation or other purposes, which is lying fallow or uncultivated and which is requisitioned for the purpose of cultivation, the compensation payable under Clause (a) of Sub-section (3) shall in no case be more than double the annual land revenue. Rest of the provisions of the Act need not be referred to.
(3.) The lands of the assessee were in Singrimari and were requisitioned under Section 3(1) of the aforesaid Act in January and May, 1949. The assessee got Rs. 1,24,638 as compensation.;