Judgement

SIKRI, J. : These three appeals are directed against the judgment of the Rajasthan High Court in a consolidated reference made to it by Income-tax Appellate Tribunal Bombay Branch, under S. 66 (1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act). The question referred to by the Appellate Tribunal is as follows :

"Whether on the facts and in the circumstances of the case the sum of Rs. 96,000 paid by the assessee during each of the relevant accounting years was rightly allowed as a revenue deduction in computing the business profits of the assessee company."

2. The reference arose out of the following facts: The appellant, M/s. Gotan Lime Syndicate, hereinafter referred to as the assessee, is a registered firm and carries on the business of manufacturing lime from lime-stone. By an indenture dated March 4, 1949, the assessee was granted the right to excavate lime-stone in certain area at Gotan and Tunkaliyan, subject to certain conditions. It is not necessary to detail the conditions contained in this indenture except that the lease expired on July 14, 1952. The lease was extended from time to time by the Government for short periods. The last letter da