COMMISSIONER OF INCOME TAX Vs. NABHINANDAN DIGAMBER JAIN

JUDGEMENT

(1.) THE following question of law was proposed by the petitioner for the year 1988-89 :

(2.) THE Revenue has filed this application under Section 256 of the Income-tax Act, 1961, asking this court to direct the Tribunal to state the case and refer the following question for our determination :

(3.) 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 situation here. 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.