Judgment

HEGDE, J.: This appeal by certificate arises from the decision of the Calcutta High Court rendered in a reference made to it by the Income Tax Appellate Tribunal, B Bench, Calcutta under S. 66 (1) of the Indian Income-tax Act, 1922 (which will hereinafter be referred to as the Act ). Along with its statement of case, the tribunal submitted two questions to the High Court for its opinion. They are :

"(1). Whether on the facts and in the circumstances of the case, the sums of Rs. 2,55,733/- and Rs. 3,00,332/- receivable by the assessee as arrears of royalty and rent were assessable as the income of the assessee for the assessment years 1948-49 and 1950-51 respectively ? and

(2) Whether on the facts and circumstances of the case the sum of Rupees 2,80,000/- being the surplus derived by the assessee on sale of property was assessable as the income of the assessee for the assessment year 1950-51."

2. The facts set out in the statement of the case, in brief, are as follows :

The assessee M/s. Rajasthan Mines Ltd., is a public limited Company incorporated on January 23, 1947. The Raja of Ramgarh was the landlord of the North and South Karanpura fields covering about 312 villages.