Spontaneous forest tree income is not agricultural income and remains taxable absent cultivation or human agency.

Income from forest trees of spontaneous growth, where no actual cultivation or other human agency contributed to their production, is not income derived from land used for agricultural purposes by agriculture. On those facts, the receipts from sale of the trees did not qualify as agricultural income and were not exempt from income-tax. The HC also declined to reopen earlier assessments or disturb the Tribunal's factual finding on the evidence.

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Issues: Whether income from the sale of forest trees of spontaneous growth, growing on land naturally and without the intervention of human agency, constitutes agricultural income within the meaning of the Income-tax Act and is exempt from income-tax.

Analysis: The finding of fact accepted in the reference was that the trees were of spontaneous growth and had not resulted from any actual cultivation by the assessee. On those facts, the income could not be said to be derived from land used for agricultural purposes by agriculture, because no human agency or cultivation had contributed to the production of the trees. The Court also declined to reopen earlier assessments or disturb the Tribunal's factual finding on the evidence.

Conclusion: The income was not agricultural income and was not exempt from tax.

Final Conclusion: The reference was answered against the assessee and the Department succeeded on the statutory question referred.

Ratio Decidendi: Income from forest trees of spontaneous growth, unconnected with cultivation or any contribution by human agency, is not income derived from land used for agricultural purposes by agriculture and therefore does not qualify as agricultural income for exemption.

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