Judgment

GROVER, J. This is an appeal from a judgment of the Patna High Court in a reference made to it under Section 66 (1) of the Income Tax Act, 1922, by the Appellate Tribunal by which the following question of law was referred for determination by the High Court:-

"Whether on the facts and circumstances of this case, the Tribunal was right in holding that the sum of Rs. 2,20,000/- was the income of the assessee assessable to tax under the provisions of the Income Tax Act?"

2. The original assessee was Maharaja Pratap Udainath Sah Deo, the holder of an impartible estate. On January 22, 1944 the assessee granted a lease of certain mining rights to Aluminium Production Company Ltd. in respect of 171.03 acres of land for a period of 30 years. The main terms were as follows:

(i) Salami (inclusive of Moharakari and Dewani Negi amounting to Rs. 5,000/- Rs. 2,25,000/-

(ii) Rent Re -/8/- per acre.

(iii) Royalty Re. -/6/- per ton.

(iv) Minimum royalty Rs. 22/- per acre.

Previously the assessee had granted a prospecting lease of 311 acres of land to the same Company on March 20, 1941 for a period of one year. The area covered by that lease though larger included substantially the area leased