Unauthorised occupation of poramboke land does not create taxable agricultural income under the Tamil Nadu Agricultural Income-tax Act.

Income derived from unauthorised occupation of Government poramboke land was held not taxable as agricultural income under the Tamil Nadu Agricultural Income-tax Act, 1955. The charging provision applied only to the agricultural income of a "person", and the Act linked that term to lawful ownership or holding of property. "To hold" was confined to possession and enjoyment in a lawful capacity such as owner, tenant, mortgagee in possession, or maintenance holder. A trespasser in unauthorised occupation did not satisfy that definition, so the income fell outside the Act's tax net and the Tribunal's finding was upheld.

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Issues: Whether income derived from unauthorised occupation of poramboke land could be taxed as agricultural income under the Tamil Nadu Agricultural Income-tax Act, 1955.

Analysis: The charging provision applied only to the total agricultural income of every person, and the Act defined "person" in relation to ownership or holding of property. The term "to hold" was confined to possession and enjoyment as owner, tenant, mortgagee in possession, maintenance holder, or in a similar lawful capacity. The respondent was neither the owner nor a lawful holder of the land; he was only a trespasser in unauthorised occupation of Government poramboke land. Such occupation did not satisfy the statutory definition of "person" for liability under the Act.

Conclusion: The income from unauthorised occupation of the poramboke land was not taxable under the Tamil Nadu Agricultural Income-tax Act, 1955, and the finding of the Tribunal was upheld.

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