Fishery lease income is not agricultural income where the receipt comes from fishing rights, not land used for agriculture.

Income from leasing fishery rights in tanks and supply channels was held not to be agricultural income because it arose from the right to catch fish, not from land used for agricultural purposes. The fact that the tanks and channels also supported irrigation did not alter the character of the receipt. The reference to rent or revenue in the statutory definition required a sufficient nexus with agricultural land, which fishery income lacked. The Madras Estates Land Act and the sanad did not expand the income-tax exemption, and the claim for exclusion from tax was rejected.

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Issues: Whether income from the lease of fishery rights in tanks and connected supply channels is exempt from income tax as agricultural income, and whether such exemption can be claimed on the basis of the sanad and the Madras Estates Land Act.

Analysis: The income in question was derived from the right to catch fish, not from land being used for agricultural purposes. The fact that the tanks and channels were also used for irrigation did not change the character of the receipt. The reference to rent or revenue in the definition of agricultural income required a nexus with land used for agriculture, and income from fishery rights did not satisfy that test. The provisions of the Madras Estates Land Act were confined to their own remedial scheme and did not enlarge the scope of agricultural income under the Income-tax Act. The claim based on the sanad and permanent settlement was also rejected in light of the Privy Council authority.

Conclusion: The income from the fishery lease was not agricultural income and was properly assessable to income tax; the question was answered against the assessee.

Final Conclusion: Receipt from the leasing of fishery rights in agricultural tanks is not exempt as agricultural income merely because the tanks also serve irrigation purposes, and it remains chargeable under the income-tax law.

Ratio Decidendi: Income derived from the exercise of fishery rights is not income derived from land used for agricultural purposes, and therefore does not fall within the statutory exemption for agricultural income.

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