TMI Blog1948 (6) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... d, which is proportionate to the 'agricultural income' earned by the principal company, is 'agricultural income' within the meaning of Section 2(1) of the Indian Income-tax Act, 1922, and exempt from assessment under the provisions of Section 4(3)(viii) of the Act. The High Court answered this question in the negative, taking the same view of the law as had been taken by the Income-tax Officer, the Appellate Assistant Commissioner of Income-tax, Bombay, and the Income-tax Appellate Tribunal. Their Lordships have no doubt that the view unanimously held by the Tribunals in India is correct. The assessee, at all material times, was the managing agent of Marsland Price and Company, Limited (hereinafter called the princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income is derived from sugar manufactured from its own cane such income is agricultural income and as such is exempt from income-tax. The assessee claimed that as its remuneration was calculated with reference to the income of the principal company, part of which was agricultural income, such part of the remuneration as was proportionate to the agricultural income of the principal company, was itself agricultural income and as such exempt from income-tax. As already indicated, this claim was rejected by the Income-tax Officer, and in appeal by the Assistant Commissioner of Income-tax and the Appellate Tribunal. At the request of the assessee the Appellate Tribunal referred to the High Court the question already mentioned. Agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er a contract imposing personal liability on the covenantor, the discharge of which was secured by a charge on land. In Commissioner of Income-tax, Bihar and Orissa v. Maharajadhiraj of Darbhanga [1935] 3 ITR 305 the assessee carried on business as a money-lender. As security for a debt due to him in respect of his business he was put into possession of agricultural land as a mortgagee. It was held that the rents received by the assessee from the agricultural land were agricultural income and exempt from income-tax and that the exemption was not affected by the circumstance that the rents were received as part of the money-lending business of the assessee, the exemption depending on the kind of income received and not on the character of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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