1951 (3) TMI 34

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....et and making profit. The plot was requisitioned by the military authorities under the Defence of India Rules. There was an agreement between the assessee and the military authorities that a sum of Rs. 1,100 per month will be paid to the assessee as compensation for the use of the land. It should be added that the military authorities used the land as a store-yard. For the year 1946-47 the assessee received a total sum of Rs. 13,200 as compensation. After making statutory deductions, the Income-tax Officer held that the net sum of Rs. 9,699 received by the assessee from the military authorities was liable to be taxed. The assessee preferred an appeal to the Appellate Assistant Commissioner and argued that the amount was not liable to be tax....

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....nt company from working the fireclay under the railway, contending that the fireclay was not a mineral and consequently formed part of the railway company's property. While the action was pending the appellant company was interdicted from working under the railway. In 1911 the House of Lords decided against the railway company, which thereupon exercised its statutory powers to require part of the fireclay to be left unworked on payment of compensation. The amount of compensation was settled by arbitration and duly paid to the appellant company in 1913. The question debated before the House was whether the amount received for compensation in respect of the fireclay left unworked was profit earned in the course of the company's trade.....