Judgement

BHARGAVA, J. :- The appellant assessee, who is an individual, carries on business of supplying lime and sand. With the object of procuring sand, he obtained a leave under a lease-deed dated Ist February, 1954, from the then Govermnent of State of Hyderabad. The terms of this lease, which are relevant for the purpose of deciding these appeals, will he indicated later. At this stage, it may, be mentioned that, under this lease, the assessee was required to pay a sum of Rs 82,500/- as lease money to the Government. The period of lease was found 1st February, 1954 to 31ist December, 1954. The assessee s account year ends with the last day of September each year. The assessee paid a sum of Rs. 56,100/- in respect of the account year ended 30th September 1954 for the assessment year 1955-56 and another sum of Rs. 26,400/ for the account year ended 30th September, 1955 relevant to the assessment year 1956-57. Both these payments were claimed by the assessee, in the proceedings for assessment to income-tax, as revenue expenditure. The Income-tax Officer held that, under the lease-deed, the assessee had secured a right to quarry sand from the river-bed, which was a right in the nat