TMI Blog1945 (2) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural lands in the district of Malabar which he leases to tenants. Under the Malabar Tenancy Act, 1930, a tenant is entitled to renewal of his lease, which is usually for 12 years. It is the custom in that part of India for the tenant to pay a renewal fee, which is known as Avakasam and additional Avakasam which is a percentage of the Avakasam. The assessee has been in the habit of requiring h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome-tax Act defines such income as rent or revenue derived from land which is used for agricultural purposes. He was not, however, prepared to treat the excess demanded from the tenant as agricultural income. On an appeal by the assessee to the Appellate Assistant Commissioner it was held that the excess must also be treated as agricultural income. The Appellate Tribunal, Bombay Bench, agreed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gricultural income. If a fee exacted for the granting of a renewal is agricultural income it is difficult to see why a further exaction for whatever purpose should not be so classified if the payment is demanded before the lease is renewed. A Full Bench of the Patna High Court in Rajendra Narayan Bhanja Deo v. Commissioner of Income-tax, Bihar Orissa [1929] I.L.R. 9 Pat. 1, held that mutation fe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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