COMMISSIONER OF INCOME TAX Vs. BAKSHI BHAGCHAND

JUDGEMENT

(1.) THIS is a reference by the Income-tax Appellate Tribunal, Delhi Bench, under section 66(1) of the Income-tax Act. The question of law referred to us for our opinion reads as follows :

(2.) THE facts in so far as they are relevant for the purposes of the present reference may be shortly stated as follows. THE assessee was a jagirdar in the former State of Jaipur. He derived income from his jagir lands, which, according to the statement of facts furnished to us by the Tribunal, are non-Khalsa settled lands. It is admitted that the assessee did not pay land revenue to the State. It is further admitted that under the Jaipur District Boards Act, 1947 (XXXIII of 1947) (hereinafter referred to as the Act of 1947), these lands were subject to a cess based on the rent payable by the tenants thereof. THE dispute relates to the assessment year 1952-53 corresponding to the financial year 1951-52 ending on March 31, 1952. THE net income derived by the assessee from the jagir lands during the accounting period amounted to Rs. 5,490. It was contended by the assessee before the Income-tax Officer that this income was exempt from income-tax as it was agricultural income within the definition of section 2(1) of the Income-tax Act. THE relevant portion of section 2(1) of the said Act reads as follows :