HARSHAMUKHI DASI Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) This is a Reference made by the Income-tax Appellate Tribunal, Calcutta Bench, under Section 66 of the Indian Income-tax Act in which the following question is referred to the Court for its opinion:

(2.) On November 25, 1921, a lease was executed by Kumar Manindra Chandra Singha in favour of John Carapiet Galstaun of certain properties, which were described in the first schedule to the deed. There were in fact fourteen separate properties, which formed the subject-matter of this one lease. The lease was for a period of twenty-five years from November 1, 1921 and a premium of Rs. 25,000 was payable before the execution of the lease. The rent reserved by the lease was Rs. 58,000 payable in twelve equal monthly instalments on the fifteenth day of each month. The lessee was to pay all municipal taxes and assessments, subject to a contribution of Rs. 4,936-2 per annum by the landlord towards such payments. The lessor had to carry out certain repairs, but if the cost exceeded Rs. 150 the lessee had to make a contribution. The liability for general repairs was on the lessee. It was expressly provided that all additions and improvements made by the lessee were to be surrendered intact to the lessor on the termination of the lease.

(3.) By another deed executed on February 27, 1922, between the parties the rent of Rs. 58,000 payable under this lease was reduced to Rs. 55,000.