TMI Blog2001 (5) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... e of computing the accumulation of income in excess of 25 per cent. of the total income as laid down under section 11 of the Income-tax Act 1961?" - Section 10(1) of the Act excludes agricultural income and in that view of the matter, we are of the opinion that the reference as sought for is uncalled for. - - - - - Dated:- 2-5-2001 - Judge(s) : C. K. PRASAD., ARUN MISHRA. JUDGMENT The following question of law was proposed by the petitioner for the year 1988-89: "(i) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that the agricultural income will not form part of total income for the purpose of computing the accumulation of income in excess of 25 per cent. of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing words of section 10 as well as section 11 shows that both the provisions exclude certain types of incomes from being included in the total income of a person. Section 10(1) excludes agricultural income while section 11(1) excludes income derived from property held under trust to the extent specified. Now we are concerned with an assessee who has got both the types of income, namely, income from agriculture and income derived from property held under trust wholly for charitable or religious purposes. However, the exemption under section 11 is not an absolute one. The exemption is available only to the extent such income is applied for such purposes in India or is accumulated to the extent permitted. What the Income tax Officer had to det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me in an appropriate ratio." From a close reading of the judgment of the Allahabad High Court it is evident that it had held that section 10(1) of the Act excludes agricultural income while section 11(1) of the Act excludes income derived from property held under trust to the extent specified. In the said case the assessee had not maintained a separate account of the income derived from non-agricultural property, and in such a situation, the court observed that it is not so much a question of law but one of applying a fair and equitable rule and in the absence of separate accounts the Income-tax Officer had no option but to allocate the amount spent between agricultural and non-agricultural income in an appropriate ratio. This is not a si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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