Law:

Section:

Section 10(1) (Corresponding to section 4(3)(viii) of the Indian Income-tax Act, 1922) read with section 2(1A) of the Income-tax Act, 1961 - Exemptions - Agricultural income - Assessment year 1957-58 - Whether in order to get exemption, assessment of land revenue or local rate must be legal and valid assessment - Held, yes - Whether, therefore, where assessee was not liable to land revenue or local rate merely because illegally assessment came to be made but later collected tax came to be returned, income derived by assessee as a superior landholder from lands, which were used by tenants for agricultural purposes, could not be said to be agricultural income within meaning of section 2(1)(a) of 1922 Act and was not exempt from tax under section 4(3)(viii) of 1922 Act - Held, yes FACTS The assessee was a superior holder of G. The assessee had income from forest property, ground rent, etc. In compliance with the notice under section 22(2) of the 1922 Act the assessee had filed a return of income showing a total income as income from other sources. After making certain adjustments the assessment was completed by the ITO on a higher income. In the appeal against the order of the ITO the assessee contended before the AAC that the income derived by the assessee on cash basis from the above estate was agricultural income within the meaning of section 2(1)(a) of the 1922 Act and was exempt from tax under section 4(3)(viii) of the Act. As this question was not agitated before the ITO a remand report was called for from him and after taking into account the remand report submitted by the ITO the AAC took the view that the assessee's lands were liable neither to land revenue nor to local cess during the relevant accounting period and, accordingly, held that the income did not qualify for exemption as agricultural income under section 4(3)(viii) of the 1922 Act. On reference : HELD Having regard to the definition of the phrase "agricultural income" in section 2(1)(a) of the 1922 Act, before any rent or revenue derived from land used for agricultural purposes is treated as agricultural income, one of the conditions to be fulfilled is, (a) that the land is either assessed to…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492