MANCHANDA, J. :- This is a case stated under section 66 (1) of the Indian Income-tax Act 1921 hereinafter referred to as the Act. The question referred is :

" Whether on a true interpretation of rule 24 of the Income-tax Rules made under section 59 of the Indian Income-tax Act and the 2 lease deeds executed on 8-1-1954 and 30-1-64, the assessee was entitled to claim the exemption of 60 per cent of the net income from sale of tea leaves from the Banjarwala Tea Gardens which he had taken on lease ? "

2. The material facts are these. The assessee is an individual. He had taken on sublease for a period of 15 years a tea garden known as Banjarwala Tea Garden from Shri Kaushalendra Pratap Singh and Sri Devendra Singh who had a perpetual lease, under an agreement dated the 8th January 1964. The material covenants of this lease deed are :

" Whereas the first party (lessees) are the perpetual lessees of Banjarwala Tea Estate and as such have become Bhumidhars in the area of about 200 acres grown with tea bushes and whereas the first party has agreed with the second party to sell the tea crop of the entire Banjarwala Tea garden to the second party (assessee) for a period of five years