SIDDAPPA H L Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Banglore Bench, has referred the following question for the opinion of this court :

(2.) THE assessment year is 1972-73 and the relevant previous year was the one that ended on March 31, 1972. THE assessee is an owner of a coffee estate and it transpires that there were some sandalwood trees in that estate. By virtue of the provisions of the Karnataka Forest Act,1963, and the earlier enactments repealed by it, sandalwood trees, whereever grown in the State, belonged to the State Government and the owner of any private land on which any sandalwood trees stood, would not be entitled to them. In the relevant previous year six sandalwood trees were cut and extracted from the assessee's land by the forest department and a sum of Rs. 17,482 was paid to the assessee by way of bonus as provided in r. 114 of the Karnataka Forest Rules, 1969. THE said rules reads as follows :

(3.) SECTION 84 of the Forest Act provides that notwithstanding anything contained in any law, contract, grant or other instrument or judicial decision-(1) all sandal trees whichmay grow in any land after the date of the commencement of the Act, and (ii) all sandal trees existing on any land prior to the commencement of the act, the ownership in which vested in the State Government, shall be the exclusive property of the State Government. SECTION 85 of the said Act provides that every occupant or holder of land shall be responsible for the due preservation of all sandal trees growing thereon, which are the exclusive property of the State Government, and shall in the event of any injury to any such trees from whatevercause or its theft at once report such fact to the nearest officer or police officer. Sub-section (2) of s. 85 provides that the occupant or holder shall be liable for penalty ifhe is unable to prove that the injury to or theft of the sandal trees was not due to his own act or neglect and he shall also be liable to pay the State such compensation on account of such injury or theft as the forest officer deems reasonable. SECTION 87 makes provision regulating the sale of sandal trees, etc.