Law: Income Tax Act, 1922

Section: 66(1)

Income-tax Act, 1922 -Secstions 2(1), 4(3)(viii) -- Agricultural income -Income from forest of spontaneous growth without any aid of human skill and labour -Whether agricultural income -Held no -- Commissioner, of Income-tax, East Bengal v. Kumar Ram Narayan Roy Chowdhury and others (1959) 1-TAX 207 (S. C.) JUDGMENT {A.S. CHOWDHURY J.}.-The following question has been referred to us by the Income-tax Tribunal, Dacca, under Section 66(1) of the Income-tax Act. "Whether on the facts and circumstances of the case income from forest of the assessee for assessment years 1948-49, 1949-50, 1950-51 and 1952-53 is agricultural income not liable to assessment under the Income-tax Act?" This reference arises out of the assessment made in the case of the assessees M/s Suresh Prosad Lahiri Chowdhury and others for the years mentioned in the aforesaid question. The assessees, it is stated, leased out their forest to the Government and derived income in various kinds. It was, however, prayed that the income derived from forests was not liable to income-tax, as the income constitute agricultural income. The Appellate Assistant Commissioner set aside the order of the Income-tax Officer and directed that the forest income should be excluded from the assessment. The appeal preferred by the department before the Tribunal was dismissed. Thereafter on an application by the Department, the present reference was made to this Court. On a reference to the assessment order it appears that the Income-tax Officer stated "......it is declared in writing that this forest is of spontaneous growth without any aid of human skill and labour. As such the income from such forest is taxable under Income-tax Act, 1922." It will, therefore, appear that in this case it was claimed on behalf of the assessees that the "forest is of spontaneous growth without any aid of human skill and labour." In the case of Gopal Das Chowdhury v. The Commissioner of Agricultural Income-tax, East Bengal, reported in {4. P.L.R. (Dacca) 439}, it was held by a Division Bench of this Court that income from forest was agricultural income. But on a scrutiny of the facts of that case it appears that in that case it was found…

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