https://www.taxtmi.com/caselaws?id=190565 Dividend received by a shareholder from a tea company did not retain agricultural income character merely because the company's profits partly included exempt agricultural receipts. A company is a separate legal entity, and the shareholder's income arises only when dividend is declared; the immediate and effective source of that receipt is the dividend declaration, not the land from which the company's profits were generated. The exemption for agricultural income applies only where the assessee's own income is directly derived from land used for agricultural purposes. Accordingly, the dividend was taxable in the shareholder's hands and was not exempt as agricultural income. en-us Fri, 28 Mar 1952 00:00:00 +0530 Sat, 18 Feb 2017 17:39:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190565 Dividend received by a shareholder from a tea company did not retain agricultural income character merely because the company's profits partly included exempt agricultural receipts. A company is a separate legal entity, and the shareholder's income arises only when dividend is declared; the immediate and effective source of that receipt is the dividend declaration, not the land from which the company's profits were generated. The exemption for agricultural income applies only where the assessee's own income is directly derived from land used for agricultural purposes. Accordingly, the dividend was taxable in the shareholder's hands and was not exempt as agricultural income. Case-Laws Income Tax Fri, 28 Mar 1952 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190565