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Issues: Whether the expression "income-tax" in rule 2(2)(c) of Schedule I to the Madhya Pradesh Abolition of Proprietary Rights (Estates, Mahals, Alienated Lands) Act, 1950 includes super-tax for the purpose of computing compensation.
Analysis: The compensation scheme under section 8(1) read with Schedule I required the net income of an estate to be computed by deducting specified items from gross income, and compensation to be fixed at ten times the net income. The expression used in rule 2(2)(c) was "the average of the income-tax paid in respect of the income received from big forest", which pointed to a tax directly attributable to that source. Super-tax, though described in the income-tax law as an additional duty of income-tax, retained a distinct identity, was charged on total income, and could not be allocated to a particular source of income in the same way as income-tax. In an expropriatory provision, the language used had to be given effect according to its natural meaning, and the deliberate use of "income-tax" without any mention of super-tax indicated that only income-tax was deductible.
Conclusion: The expression "income-tax" in rule 2(2)(c) does not include super-tax. The deduction of super-tax from the estate's gross income was not permissible, and the respondent succeeded on this issue.
Ratio Decidendi: Where a statutory compensation rule directs deduction of income-tax paid in respect of income from a specified source, super-tax, being a separate levy on total income and not attributable to that source, is excluded unless the statute expressly provides otherwise.
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