TaxTMI 
TaxTMI 
1967 (4) TMI 41
X X X X Extracts X X X X
X X X X Extracts X X X X
....lease which she had obtained from the Government for a period of 30 years under a lease dated October 30, 1939. When she died on September 5, 1956, it is apparent that she had owned the mining lease for 17 years and the unexpired lease would have run for further 13 years, but for the Mines and Minerals (Regulation and Development) Act, 1948 (53 of 1948) (hereinafter called "the Act"), by and under which rules were framed in exercise of the powers conferred under section 7 to alter the terms of the lease and the period of the lease granted prior to the date on which the Act came into force. It may also be stated that under the provisions of the Act any leases granted after the commencement of the Act would only enure for a period of 20 years....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion shall be determined." It may be stated that under sections 5 and 6, the Central Government was given power to make rules in respect of mining leases and mineral development. Under clause (c) of sub-section (2) of section 5 rules could be framed by the Central Government for the maximum and minimum area and the period for which any mining lease may be granted and the terms on which leases in respect of contiguous areas may be amalgamated. It is thus clear that the Central Government could frame rules under section 7 read with section 5 fixing the period of the leases granted prior to the commencement of the Act in order to bring it in conformity with the provisions of the Act. Such rules were in fact framed and placed before the House....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on the date of the death of the deceased will be computed in accordance with the figures given by him. Evidently, there is no dispute as to the manner of computation or in respect of the terms of the unexpired lease for which the mica mine has been valued. The argument of the auditor that on June 27, 1959, the Controller of Mining Leases for India had fixed the period of the lease at 21 years from October, 1939, and, therefore, only four years and not 13 years remained was rejected on the ground that the rules first came into effect on September 15, 1956, which was after the death of the deceased and is not relevant to the valuation of the mine. The Appellate Controller, however, reduced it to four years. But the Appellate Tribunal, in our ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny period beyond 20 years in so far as mica lease is concerned, would be reduced. No doubt there was no indication as to what was the period to which it would be reduced, but any person to whom the unexpired portion of the lease was offered would certainly have to consider the risk of its reduction. That risk would certainly affect the valuation. Merely because at the time of the partition between the parties a certain valuation has been fixed, is no indication that on the date of the death of the deceased when the draft rules had been passed by Parliament and were awaiting publication, the period would be reduced by a notification as soon as these rules would be published. The action to be taken under those rules was imminent and any perso....