https://www.taxtmi.com/caselaws?id=151312 Interest on arrears of rent for agricultural land is not agricultural income because its immediate and effective source is the debt arising from rent default, not the land itself. The statutory term "derived" requires the inquiry to stop at that effective source, so the interest remains taxable despite the tenancy connection. Administrative practice treating similar interest as exempt could not override the statutory meaning absent legislative adoption. A usufructuary mortgage bond preserving the debtor's personal liability was construed by its true effect as securing the same debt, so the earlier rule applied and that arrangement did not change the tax position. en-us Tue, 06 Jul 1948 00:00:00 +0530 Tue, 27 Dec 2022 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151312 Interest on arrears of rent for agricultural land is not agricultural income because its immediate and effective source is the debt arising from rent default, not the land itself. The statutory term "derived" requires the inquiry to stop at that effective source, so the interest remains taxable despite the tenancy connection. Administrative practice treating similar interest as exempt could not override the statutory meaning absent legislative adoption. A usufructuary mortgage bond preserving the debtor's personal liability was construed by its true effect as securing the same debt, so the earlier rule applied and that arrangement did not change the tax position. Case-Laws Income Tax Tue, 06 Jul 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151312