GULABSING FATTESING VASAVE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under section 66 (1) of the Indian Income -tax Act, 1922, referred to us by the Tribunal at the instance of the assessee. The question of law referred for our determination is as follows : 'Whether, on the facts and in the circumstances of the case, the income derived by the assessee as a superior landholder from the lands, which were used by the tenants for agricultural purposes, was agricultural income within the meaning of section 2 (1) (a) and exempt from tax under section 4 (3) (viii) of the Indian Income -tax Act, 1922 ?'

(2.) THE question relates to the assessment year 1957 -58 in respect of the previous year ending on July 31, 1956. The assessee is a superior holder of Gangetha Estate in the Akkalkuva Taluka, District of West Khandesh. The Gangetha Estate was a Mehwassi Estate. The assessee had income from forest property, ground rent, etc. In compliance with the notice under section 22 (2) of the Act, the assessee had filed a return of income showing the total income of Rs. 1,29,913 as income from other sources. After making certain adjustments the assessment was completed by the Income tax Officer on a total income of Rs. 1,61,701.

(3.) IN an appeal by the assessee before the Tribunal, the order passed by the Appellate assistant Commissioner was confirmed and it is thereafter that at the instance of the assessee the above question is referred to us for our determination.