Spontaneous forest and jungle produce is not agricultural income absent cultivation or other human agricultural operations.

Income from catechu, forest timber, grass, bhang, fruits and other produce growing naturally or spontaneously on land assessed to land revenue is not agricultural income unless it results from cultivation or other human agricultural operations. Produce from forest trees, jungle land, reeds, shrubs or spontaneous fruit growth does not qualify merely because the land is revenue-assessed or the items are useful to agriculturists. The disputed receipts were therefore treated as taxable and not exempt as agricultural income.

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Issues: Whether income from the sale of catechu, kahcharai, narkul jalkar, forest timber, grass and phus, bhang, and fruits of mango, imli and kathal growing naturally and spontaneously on land assessed to land revenue was agricultural income within section 2(1) of the Income-tax Act and exempt under section 4(3)(viii).

Analysis: The items in dispute were derived from wild or spontaneous growth, without cultivation or other human agency. Income from forest trees or fruit of spontaneous growth on land assessed to land revenue is not income from land used for agricultural purposes. That principle applies equally to grass, grazing dues, reeds, shrubs, bhang, and fruits growing naturally in groves or jungle land. A commodity used by agriculturists does not become agricultural income merely because it is useful for agricultural activity.

Conclusion: The income from all the disputed items was not agricultural income and was not exempt from income-tax.

Final Conclusion: The reference was answered against the assessee, and the receipts in dispute were held taxable.

Ratio Decidendi: Income derived from spontaneous growth on land, without cultivation or other agricultural operations, does not constitute agricultural income merely because the land is assessed to land revenue or the produce is useful to agriculturists.

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