Zamindari income taxable under general income-tax law; Permanent Settlement does not bar a later tax on incomes.

Income derived from a zamindari falls within the charging scheme of the Income-tax Act, 1922 and is assessable under the residuary head unless specifically exempted. The Permanent Settlement Regulations of 1793 protect zamindars against enhancement of jama, but do not exempt their income from a later general tax on incomes. The items claimed as agricultural income were not shown on the material before the Board to satisfy the statutory definition, so the exemption claim failed. Accordingly, zamindari income remained taxable and the disputed items were liable to assessment.

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Issues: (i) Whether income derived from a zamindari falls within the charging scheme of the Income-tax Act, 1922 and is assessable under the residuary head of income. (ii) Whether the Permanent Settlement Regulations of 1793 exempt zamindari income from general taxation, including income tax imposed on incomes generally. (iii) Whether the specified items claimed by the assessee constituted agricultural income and were therefore exempt under the Act.

Issue (i): Whether income derived from a zamindari falls within the charging scheme of the Income-tax Act, 1922 and is assessable under the residuary head of income.

Analysis: The charging provisions and the scheme of classification in the Act were read together to determine whether zamindari income escaped assessment. The heads of income in section 6, read with the residuary provision in section 12, showed that income of every kind from every source to which the Act applied was chargeable unless expressly exempted. Zamindari income did not fall within the limited head of property as house property, and therefore was assessable under the residuary head if otherwise within the Act.

Conclusion: Zamindari income was chargeable to income-tax under the Income-tax Act, 1922, and was assessable under the residuary head.

Issue (ii): Whether the Permanent Settlement Regulations of 1793 exempt zamindari income from general taxation, including income tax imposed on incomes generally.

Analysis: The relevant regulation was construed as securing fixity of jama and protecting zamindars against enhancement of the Government's demand on account of increased produce. It did not contain any promise that zamindari income would be immune from a later general tax on incomes or from a taxation scheme applicable to all inhabitants. The assurances in the regulation were confined to the public assessment and did not amount to a surrender of the sovereign power to levy a general income tax.

Conclusion: The Regulations did not exempt zamindari income from general income taxation, and the objection based on the Permanent Settlement failed.

Issue (iii): Whether the specified items claimed by the assessee constituted agricultural income and were therefore exempt under the Act.

Analysis: The material placed before the Board did not justify classifying any of the disputed items as agricultural income within the statutory definition. The claim for exemption therefore could not be accepted on the facts found and the limited materials relied upon.

Conclusion: The claimed items were not agricultural income and were not exempt from assessment.

Final Conclusion: The assessment was upheld on all material questions, and the appellant obtained no relief.

Ratio Decidendi: Income derived from a zamindari is taxable under the general charging provisions of the Income-tax Act, 1922 unless specifically exempted, and the Permanent Settlement Regulations protect only against enhancement of jama, not against general income taxation.

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