Law:

Section:

Section 2(1A) of the Income-tax Act, 1961 [Corresponding to section 2(1) of the Indian Income-tax Act, 1922] - Agricultural income - Assessment year 1945-46 - Assessee claimed income from sale of standing sal trees as agricultural income - There was no evidence about planting and growth of those trees - All skill and labour employed by assessee were after produce had sprouted from soil and there was no operation of nature of cultivation on forest land itself - Whether, on facts, income derived from sale of sal trees could not be treated as agricultural income - Held, yes FACTS The assessee owned an estate comprising inter alia forests, the gardens, agricultural land, house properties. His estate was managed by a guardian appointed by the District Court, who received commision at 5 per cent of the gross income. For the assessment year 1945-46, the income received from sale of sal trees was treated as non-agricultural income by the department and was assessed in the hand of the assessee. On appeal, the Tribunal held that there was no evidence that the sale trees in question were the result of any planting of seeds or saplings and consequently the Tribunal drew the inference that they were trees of spontaneous growth. Accordingly, the Tribunal held that the income in question was not agricultural income within meaning of section 2(1) On reference : HELD In the instant case the inference drawn by the Tribunal was based on the common knowledge that sal trees all over the country normally grow up spontaneously. The main operations which the assessee was found to be performing for earning the income from the trees were to cut the trees at a height of 6 inches above ground level and to confine the felling of trees to those trees which had a girth of 3' or more at the same height as its girth. There was also thinning out of the shoots where necessary so as to enable the proper growth of fresh shoots coming out of the stumps left after the cutting of the trees. Steps were also taken for protecting the younger plants from damage from cattle or fire. It was clear that none of these operations included any expenditure of skill or labour on the land itself. All the skill and…

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