Judgment

HIDAYATULLAH, J. : These are four appeals filed by the assessee Company (Karanpura Development Co., Ltd.) in respect of two assessment years, 1949-50 and 1950-51 and two chargeable accounting periods under the Business Profits Tax Act, January 1, 1948 to December 31, 1949. By these appeals, the assessee Company impugns the judgment of the High Court of Calcutta, dated September 18, 1958, answering a common question "whether on the facts and in the circumstances of the case, the sums received as salami by the assessee for granting sub-leases were trading receipts in its hands and the amount of profit therein is assessable under the Indian Income-tax Act" in the affirmative and against the assessee Company. The case was certified to this Court by the High Court under S. 66A(2) of the Income-tax Act and presumably also read with S. 19 of the Business Profits Tax Act.

2. The facts of the case are as follows : In 1915, the Court of Wards representing the proprietor of the Ramgarh Estate granted a prospecting licence to Messrs. Bird & Co., of an area of coal-bearing lands described as the Karanpura Coal Fields. The licence was for 12 years but was renewable for another term of