Judgement

Appeal (No. 94 of 1934) from a judgment of the High Court (December 21, 1933) on a Reference by the Commissioner of Income-tax, Bihar and Orissa.

The respondents father, who carried on a large money-lending business, lent Rs. 18 1/2 -lakhs to the administratrix of an estate known as the Lachmipur estate on terms evidenced by two deeds dated February 3, 1929. By the first deed zamindari lands in the Bhaghalpur district were conveyed by the

Law Rep. 62 Ind. App. 215 ( 1934- 1935) Commissioner of I.T. v. Maharajadhiraj of Darbhanga

91

administratrix as lessor-mortgagor to him as lessee-mortgagee " in zarpeshgi lease and by way of usufructuary mortgage with all rights and profits in respect of the properties demised which belong and accrue to the proprietor of the estate as zamindar and malik and administrator " for fifteen years from September 19, 1929. The gross average rental was estimated at Rs. 1,59,813 and, under the terms of the lease the lessee-mortgagee was to be put in possession and manage the properties, collecting rents, paying Government revenue and taxes and having all rights in relation to the raiyats that the lessor-mortgagor had. From the gross rental of Rs.