TMI Blog1972 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether, on the facts and in the circumstances of the case, the finding of the Tribunal that the income derived by the assessee by slaughter-tapping of rubber trees is not agricultural income is correct?" The year of assessment is 1965-66 and the corresponding accounting period is that which ended on March 31, 1965. The assessee received certain amounts by selling rubber obtained on slaughter-tapping of rubber trees which stood on the estate of M/s. Woodland Estates Ltd. The question is whether these amounts can be said to be agricultural income within the meaning of that expression as defined in section 2(a) of the Act. It is agreed before us that the question has to be answered in the light of the provisions in the contract between th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which those trees stood were intended to be replanted the vendor shall have the full and unrestricted right " to make pits, fence, to cut roads and paths, to put up buildings, to undertake and do all such preparatory work for the proposed replanting of rubber." The definition in section 2(a) of the Act is in these terms: "2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,- (a) 'agricultural income' means- (1) any rent or revenue derived from land which is used for agricultural purposes and is either assessed to land revenue in the State or subject to a local rate assessed and collected by officers of the State Government as such; (2) any income derived from such land by-- (i) agricultur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aja Bahadur Kamakshya Narayan Singh, whether the interest payable on arrears of rent in respect of land used for agricultural purposes is agricultural income within the definition of that phrase contained in section 2(1) of the Indian Income-tax Act, 1922. Though the decision is not very helpful for deciding the question before us, we consider that a passage from it is helpful for understanding the general import of the definition of the term "agricultural income". We may extract a passage from that decision : "The word 'derived' is not a term of art. Its use in the definition indeed demands an enquiry into the genealogy of the product. But the enquiry should stop as soon as the effective source is discovered. In the genealogical tree of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld is that under the agreement there has been no intention on the part of the contracting parties that the trees which were permitted to be slaughter-tapped, cut and removed, should derive sustenance from the land and continue to afford income to the transferee, the assessee before us. The provisions in the agreement that we have read would clearly show that the definite intention was to have the trees annihilated. There was an out and out sale of the trees and considering the extent of the land on which the trees stood, 303 acres, it is quite conceivable that the removing of the trees would take considerable time and the provisions in the agreement that the assessee had three years time to remove them does not at all imply any intention th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We are not therefore considering the effect of the decisions the Madras High Court in Commissioner of Income-tax v. K. S. Imam Saheb and in C. P. A. Yoosuf v. Income-tax Officer, Kottayam, relied on by counsel for the assessee. Counsel for the revenue urged that the propositions stated in the above decisions have been stated too broadly. We need not consider this aspect because on the facts of the case, it is not possible to say that the amounts received by slaughter-tapping the trees which the assessee purchased under the agreement dated March 23, 1964, are agricultural income. We must refer to one other aspect. When the owner of the land who by undertaking agricultural operations had cultivated trees and when he derived income by s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
