MAHARAJA PRATAP SINGH BAHADUR Vs. PROVINCE OF BIHAR

JUDGEMENT

(1.) This is a reference under Section 25(2) of the Bihar Agricultural Income-tax Act, 1938, at the instance of Maharaja Pratap Singh Bahadur through the Manager of the Gidhour Court of the Wards Estate.

(2.) For the year 1942-43 the assessee net agricultural income for the year ending the March 31, 1942, was assessed at Rs. 1,52,634 which included a sum of Rs. 14,359-9-9 received from Government as malikana. In appeal this was reduced and the case was remanded for revision of the assessment after reconsideration of certain items with which were are not concerned at present. The assessees claim that the sum received as malikana was not assessable was rejected.

(3.) The question referred to us for decision is :- Whether income received as malikana and paid by Government under Regulation VII of 1822 is agricultural income assessable to agricultural income-tax ?