JUDGEMENT

Appeal (No. 21 of 1942) from a judgment of the High Court (September 6, 1940) on a reference under s. 66 of the Indian Income-tax Act (XL of 1922) (as amended by Acts

XXI. and XXII. of 1930 and Act XVIII. of 1933), by which the High Court answered in the negative a question of law, submitted by the Commissioner of Income-tax of Bihar and Orissa in respect of an assessment to income-tax of the appellant assessee for the year 1937- 1938. The following facts are taken from the judgment of the Judicial Committee The two questions submitted to the Commissioner by the assessee to be referred to the High Court were " (1.) Whether "royalty on mines being capital revenue should not have been "excluded in computing the total income determined for "income-tax? (2.) What should be the principle on which "cost of management in collection of royalties is to be deter-" mined when there is a combined management covering both "the Zamindari collection of agricultural income and royalties "of mines?” The Commissioner of Income-tax was of the opinion that the second question raised no question of law and should not be answered by the High Court. In fact, no argument was addressed by the ass