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1961 (8) TMI 4 - SC - Income TaxWhether bamboo, thatch, fuel, etc., grown by the assessee company and utilised for its own benefits in its tea business, agricultural income within the meaning of the Bengal Agricultural Income-tax Act ? Whether such income be computed under rule 4 of the rules framed under the Act ? Held that:- The words in section 2(1)(b)(i) are, in our opinion, wide, plain and unambiguous and they cannot be construed to exclude agricultural produce used by the appellant for its business. In this connection we may incidentally refer to the provisions of sub-clauses (i), (ii) and (iii) of section 7(1) of the Act which provide for the computation of tax and allowances under the head " agricultural income from agriculture. " These three sub-clauses in terms correspond to the three sub-clauses of section 2(1)(b) and lend some support to the conclusion that clause (i) in section 2(1)(b) does not require that the agricultural produce should be sold and profit or gain received from such sale before it is included in the said clause. Therefore, we do not think that Mr. Mitra is justified in contending that the answer made by the High Court in the affirmative and against the appellant in reference to question No. 1 is wrong. Rrule 4(2) deals with cases where agricultural produce has been sold outside the market as well as cases where agricultural produce has not been sold at all. The effect of reading the two sub-rules together is that the cases of market sales are covered by rule 4(1) and all other cases are covered by rule 4(2). Rule 4(2) is a residuary rule which applies to all cases not falling under rule 4(1). Therefore, we must hold that the answer given by the High Court to question No. 2 in the affirmative and against the appellant is also right. Appeal dismissed.
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