Judgment

SARKAR, J. : The appellant was the proprietor of the Wanaparthi Jagir in the former Indian State of Hyderabad. Certain payments described as interim maintenance allowances, were made to him under the Hyderabad (Abolition of Jagirs) Regulation 1358-F, hereafter called the Abolition Regulation. These payments were brought to tax under the Income-tax Act, 1922 as income. The appellant contended that they were capital and not liable to be taxed. He took various proceedings and eventually a case was stated to the High Court of Andhra Pradesh for decision of the following question :

"Whether the interim maintenance allowances received by the assessee under the Hyderabad (Abolition of Jagirs) Regulation 1358 Fasli, are income and therefore liable to tax."

The question was answered against the appellant by the High Court and hence this appeal.

2. The point at issue is whether these payments constituted capital or income. The answer to this question will have to be found in the Abolition Regulation under which the payments were made and another Regulation called the Hyderabad Jagir (Commutation) Regulation, 1359-F (hereafter called the Commutation Regulation) which was intended to be s