Judgment

SUBBA RAO, J. : By a registered lease deed dated March 31, 1950, the assessee-company, respondent herein, leased out two tea estates named "Panbari Tea Estate" and "Barchola Tea Estate", along with machinery and buildings owned and held by it, in Darrang, in the State of Assam, to a firm named Messrs. Hiralal Ramdas for a period of 10 years commencing from January 1, 1950. The lease was executed in consideration of a sum of Rs. 2,25,000 /- as and by way of premium and an annual rent of Rs. 54,000/- to be paid by the lessee to the lessor. The premium was made payable as follows : Rs. 45,000/ - to be paid in one lump sum at the time of the execution of the lease deed and the balance of Rs. 1,18,000/ - in 16 half yearly instalments of Rs. 11,250/ - on or before January 31 and July 31 of each year. The annual rent of Rs. 54,000/- was payable as follows : Rs. 1,000/ - per month to be paid on or before the last day of each month, making in all Rs.12,000/- per year, and the balance of Rs. 42,000 / - on or before December 31 of each year. On February 25, 1957, for the assessment year 1952-53, the Income-tax Officer made the assessment treating the instalment of Rs. 11,250/ - paid t