TMI Blog2000 (2) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... 62 to 1971-72 and arise out of judgments of the Bombay High Court (see [1987] 168 ITR 431), holding that the appellant assessee was under no obligation to restore the lands to their original condition upon the determination of the lease and was thus not entitled to any expenditure being allowed for that purpose in computing its income. The Government of Bombay on April 23, 1940, granted to the predecessor of the appellant, lease for a period of 30 years on the terms and conditions set out therein. These were mining leases, Clause 3 in Part V of the lease and clause 17 in Part VII are relevant for our purpose. These are (see [1987] 168 ITR 433) : "Clause 3, Part V : The lessee shall pay to the Government in respect of all parts of the su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing injury to any mines or works under the said lands (except such of the same as may with the sanction of the Government have become disused) and all buildings and structures of brick or stone erected by the lessee above ground level in good repair, order and condition and fit in all respects for further working of the said minerals." It is not necessary for us to go into the various facets of the proceedings before the Revenue authorities except we note that the Income-tax Appellate Tribunal ("the Tribunal", for short), held that the expenditure incurred by the appellant for the purpose of restoring the lease land to the original condition was permissible expense under section 37(1) of the Income-tax Act, 1961. This was on the basis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e profits and gains of the appellant does not arise. However, the appellant is aggrieved by the observations of the High Court as well as of the Tribunal that on the interpretation of the clauses aforesaid there was no obligation on the appellant to restore the lands to its original condition. Mr. Bahuguna, learned senior counsel appearing for the assessee, refers to the aforesaid clauses of the lease and also to rule 14 of the Mining Concession Rules, 1960. He submits that it is obligatory in law on the lessee to restore the lands to its original condition after termination of the lease. Sub-clause (iv) to rule 14 of the Mining Concession Rules is as under : "Sub-rule (iv) to rule 14 : save in the case of land in respect of which the lic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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