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PETITIONER: MAHARAJA CHINTAMANI SARAN NATH SAH DEO
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX, BIHAR & ORISSA
DATE OF JUDGMENT: 30/11/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 732 1961 SCR (2) 790 CITATOR INFO : R 1965 SC1871 (3)
ACT: Income Tax--Capital or Revenue receipt--Prospecting licence for bauxite--Licensee’s right to appropriate samples in --reasonable quantities--Grant of right to a Portion of capital--Payments to licensor--Liability to tax.
HEADNOTE: In 1945 the appellant who was a Zamindar granted licences to different parties to prospect bauxite. Under the licence the licensee had the right to enter upon the land to prospect, dig and prove all bauxite lying in or within the land and to take away and appropriate samples of bauxite in reasonable quantities not exceeding 100 tons in the aggregate. In consideration of the premium paid, the licensees could, at their option, after giving necessary notice and on payment of a further sum, get a mining lease for a term of thirty years. The income-tax authorities were of the view that the licensees were not granted any interest in land and that the amounts received by the appellant from the licensees were revenue receipts and, therefore, assess- able to income-tax. Held, that on its true construction the transaction of 19...