Judgment

KHANNA, J.: - The short question which arises for determination in these six civil appeals Nos. 1184 to 1186 and 1198 to 1200 of 1970 which have been filed on certificate by the Commissioner of Income-tax against the judgment of the Andhra Pradesh High Court is whether, on the facts of the case, the sum of Rs. 1,00,000/ received by the assessee from the Trustees of Princess Niloufer Trust constituted income under the Indian Income-tax Act 1922 (hereinafter referred to as the Act) and if so, whether the assessee was entitled to exemption from tax in respect of that income under the terms of the agreement entered into with the Government of India on October 8, 1949 The High Court to which the above question was referred under Section 66 (1) of the Act held that though the payments of Rs. 1,00000 per year was income in the hand of the assessee, he was entitled to exemption from tax thereon under the terms of agreement dated October 8, 1949.

2. The matter relates to the assessment of the income for the years 1952-53, 1953-54 and 1954-55 of Nizam Mir Osman Ali Khan Bahadur who was the Ruler of Hyderabad State prior to its integration with the Union of India. A large number of que