Agricultural income must be assessed on actual receipt, not notional receivable income, under the Bengal Agricultural Income-tax Act.

Section 7 of the Bengal Agricultural Income-tax Act, 1944 was applied on the basis of agricultural income actually received in the previous year, not on a notional receivable figure derived from total holding, estimated yield, and deductions. The court treated actual receipt as the ative factor for assessment and held that assessments made on a receivable basis were vitiated by error apparent on the face of the record. Fresh assessments were directed on the basis of income actually received by the assessee.

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Issues: Whether agricultural income for assessment under section 7 of the Bengal Agricultural Income-tax Act, 1944 was to be computed on the basis of income actually received by the assessee or on the basis of income receivable from the land.

Analysis: Section 7 requires assessment on the agricultural income received in the previous year. The decisive factor was the amount actually received by the assessee, not a notional figure worked out on the basis of total holding, estimated yield, and deductions. Since the assessments proceeded on a receivable basis rather than on actual receipt, the assessments were vitiated by an error apparent on the face of the record and required fresh determination.

Conclusion: The assessments were set aside and the Agricultural Income-tax Officer was directed to make fresh assessments on the basis of the agricultural income actually received by the assessee.

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