Agricultural income exemption applies where jagir receipts arise from land revenue under an implied grant and overriding title.

Amounts received as a share in jagir income were treated as agricultural income exempt from tax because the Tribunal found they represented land revenue assigned under an implied grant, not compensation for resumption of jagir. On that factual basis, the assessee received the amounts by virtue of an overriding title, so the receipts retained their agricultural character and were not taxable as non-agricultural income.

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Issues: Whether the amounts received by the assessee on account of share in jagir income were agricultural income exempt from tax.

Analysis: The Tribunal's finding, which was accepted, was that the amount paid by the State Government was not compensation for resumption of jagir but land revenue assigned under the implied grant. On that factual basis, the assessee's share arose by virtue of an overriding title, and the question referred did not justify treating the income as taxable non-agricultural income.

Conclusion: The amounts were held to be agricultural income exempt from tax and the question was answered in favour of the assessee.

Ratio Decidendi: Where receipts are found to be land revenue assigned under an implied grant and are received by virtue of an overriding title, they retain their character as agricultural income and are exempt from tax.

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