TMI Blog1945 (12) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... d licence fees. They supplement this income by the sale of trees in non-forest areas of the estate held by them. It is admitted that the trees in the forest and non-forest areas have grown wild and that agricultural operations are not carried on in any of the areas. For the year of account 1941-42, the income from these sources amounted to ₹ 7,612 and the assessees were taxed on this sum for the year 1942-43. They maintained that they were exempt from taxation for two reasons. In the first place they said that the income was derived from the produce of a permanently settled estate which was free from all taxation, other than that imposed by way of peishkush, by reason of the provisions of the Madras Regulation. In the second place the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of agricultural income, although it would appear that the learned Judges were inclined to the view that it was. They based their decision on the broad ground that the Madras Regulation and the sanad issued to the zamindar precluded further taxation by the Government. The Sanad followed the provisions of the Regulation. In the present case, the sanad has not been produced, but it may be taken that it was also in accordance with the Regulation. If the decision in Zamindar of Singampatti case (supra) stood alone we should be bound to answer the first question referred in favour of the assessees; but it does net stand alone. There is a judgment of the Privy Council of later date which has direct bearing. It was delivered in Probhat Chandr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of Fort St. George that from the earliest until the present period of time the public assessment of the land revenue has never been fixed ; but that, according to the practice of Asiatic Governments, the assessment of the land-revenue has fluctuated without any fixed principles for the determination of the amount, and without any security to the zamindars or other persons for the continuance of a moderate land-tax ; that, on the contrary, frequent inquiries have been instituted by the ruling power, whether Hindu or Muhammadan, for the purpose of augmenting the assessment of the land revenue ; that it has been customary to regulate such augmentations by the inquiries and opinions of the local officers appointed by the ruling power for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to Indian income-tax in respect of the income, profits and gains derived from his zamindari, subject to the exemptions provided in Section 4(3) of the Adt. The assessment should be computed after making proper allowance under Section 12(2) in. respect of the jama assessed and paid. Their Lordships affirmed the decision of the Calcutta High Court that the following items of the income derived by the appellant from his zamindari were not agricultural income and therefore not exempt from income-tax by Section 4(3)(viii). (i)Jalkar or rents received from fisheries. (ii)Ground rent from land used for potteries. (iii)Ground rent from land used as brickfields. (iv)Fees received from the tying-up of boats against the assessee& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion given in Section 2(1) of the Income-tax Act. As we have indicated, the learned Judges who decided Zamindar of Singampatti case (supra) were inclined to the view that income from forests and fisheries would be agricultural income, although they did not decide this question. It is very difficult to see how income from fisheries could be classified as agricultural income. In fact the decision of the Privy Council in Probhat Chandra Barua case (supra) shows clearly that it cannot be so classified. Their Lordships did not, however, have to consider whether income from forests or individual trees of spontaneous growth comes within the definition and therefore it is necessary to examine the question for ourselves in the light of the reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the science or art of cultivating the soil, including the allied pursuits of gathering in the crops and rearing live-stock ; tillage, husbandry, farming (in the widest sense). The word agriculture implies something which is achieved with the aid of human agency. In our judgment, income derived from trees which have grown wild cannot legitimately be described as agricultural income. In inclining to the opinion that income from forests was agricultural income, the learned Judges who decided Zamindar of Singampatti case (supra) were obviously influenced by the opinion which they had formed on the main question, namely, that no other tax beyond that involved in the payment of peishkush could be levied on income derived from a permanent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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