TMI Blog1957 (5) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court was right in the decision to which it came and the questions were rightly answered by it against the appellant and these appeals of the appellant must be dismissed - - - - - Dated:- 23-5-1957 - Judge(s) : BHAGWATI., KAPUR., VENKATARAMA AIYAR JUDGMENT The Judgment of the Court was delivered by BHAGWATI, J.---These are six consolidated appeals arising out of a common judgment and six separate orders of the High Court of Judicature at Patna with certificates under section 66A(2) of the Indian Income-tax Act and they raise common questions of law: "(1) Whether in the facts and circumstances of the case, the receipts of Bankura forest lease are capital receipts or, in the alternative, constitute agricultural income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1351 Fasli, of Rs. 14,750 and Rs. 98,969 received during the year of account 1352 Fasli, of Rs. 13,836 and Rs. 1,17,173, received during the year of account 1353 Fasli and of Rs. 22,211 and Rs. 73,449 received during the year of account 1354 Fasli, by the appellant from his forests in Bankura in West Bengal and Kharagpur forest in Bihar respectively were not taxable as they were (i) capital receipts and/or (ii) agricultural income. The appellant preferred appeals to the Appellate Assistant Commissioner of Income-tax, Patna, or to the Additional Appellate Assistant Commissioner of Income-tax, Patna Range, Patna, as the case may be, against these assessment orders but the said appeals were dismissed and the orders of assessment were confi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s may grow in rains and in time mature trees are produced; refrain from entering the forests during rains when new shoots come out; and guard the forests from trespassing by men and cattle. On the conclusion of the stipulated period the lessee loses all rights, even the right to enter the land. " Kharagpur Forest (Bihar) : The income from Kharagpur forest comes from three sources, viz., (i) bamboos, (ii) sabai grass and (iii) timber. The following passage from the order of the Tribunal records the findings in regard thereto : " All these are grown wild and spontaneously. In 1944 a working plan was formulated for felling mature bamboo trees in rotation from sub-divided coupes. It cannot be said that any human agency was responsib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome element of human activity with reference to assisting the growth of some of the trees. " The High Court heard the reference and delivered one common judgment as the questions involved therein were common and answered the referred questions in the negative and against the appellant. The appellant thereupon applied for and obtained the requisite certificates of fitness for appeal to this Court as aforesaid and hence these appeals. The High Court decided the referred questions against the appellant mainly on the ground that there was no material on which to hold that there was any expenditure of human skill and labour upon the land so as to constitute the income derived therefrom agricultural income within the meaning of its definiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uent operations though they may have the effect of nursing and fostering the growth of such forest trees have nothing in common with the basic operations which are the efficient cause of raising these products from the soil and cannot constitute agricultural operations unless they form part and parcel of and integrate themselves with such basic operations. The operations which were performed by the assessee in the cases before us had nothing in common with the basic agricultural operations and did not have the effect of converting the forest produce which was of spontaneous growth into produce raised upon the land by agriculture within the connotation of that term as laid down by us in the decision referred to above. We are, therefore, o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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