TaxTMI 
TaxTMI 
1997 (12) TMI 13
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....e of the assessee received from the managing contractor was income from business ?" The assessment years involved in that case were 1963-64 and 1964-65. In that case the Tribunal found that the assessee was a public limited company deriving income from mining business known as New Bansjora Colliery. The assessee and Khas Ganeshpur Coal Mines (P.) Ltd. entered into an agreement dated April 22, 1959 (annexure "C/2"), to some of the terms of which I shall refer at a proper and appropriate place. By this agreement, Khas Ganeshpur Coal Mines (P.) Ltd. (hereinafter referred to as "the managing contractor"), was allowed to carry on the coal business of the assessee and to pay to it profit at a certain rate on the amount of coal raised and soft an....
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....umulative effect of all the various clauses of the agreement established that the managing contractor aforementioned was only working as an agent of the assessee and the transaction was not at all that of letting out. In other words, there was not even a lease executed in favour of the managing contractor. The Tribunal further held that the managing contractor aforesaid was carrying on the colliery business under the effective control and guidance of the assessee, which (control and guidance) militated against any contention that the relationship between them was one of lessor and lessee. On these findings, the Tribunal accepted the contention of the assessee that there was absolutely no question of any transfer either out and out or even b....
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.... Court had to be answered in favour of the assessee. The Revenue did not pursue the case any further. The very same question once again cropped up in the course of the assessment years 1967-68, 1968-69 and 1969-70. The Appellate Assistant Commissioner held in favour of the assessee. The Tribunal merely followed its own findings of fact and its decision given in the earlier year's case. A Full Bench was constituted to examine the question afresh. The Full Bench came to the conclusion that the earlier judgment of the Division Bench in the assessee's own case in the assessment made in the years 1963-64 and 1964-65 was erroneous. The Full Bench, on a review of a large number of cases, came to the conclusion that not only the decision of the D....
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....that the principles laid down in that case are applicable to the facts of this case. We are unable to uphold the contention made on behalf of the Revenue. It has to be borne in mind that New Savan Sugar's case [1969] 74 ITR 7 (SC), was decided on its own facts. In that case it was recorded by this court in its judgment: "On appeal, the Appellate Assistant Commissioner found that it was a simple lease of the building and machinery in a sugar factory, and as such the method of payment based on production could not affect the character and nature of the income derived under the said lease. In further appeal the Appellate Tribunal came to the conclusion that on the facts stated the case fell under section 12 and not under section 10 and that ....