https://www.taxtmi.com/caselaws?id=292816 Income derived from agricultural land under a usufructuary mortgage retains its character as agricultural income and remains exempt from assessment under the Income-tax Act, 1922, even where the mortgagee also receives periodic payments that may reflect a return on money lent. A contemporaneous lease back to the mortgagor does not change the legal nature of the arrangement if it is in substance still a usufructuary mortgage. The Court also rejected treating the same land-based receipts as taxable business profit, noting that such a construction would amount to double taxation. The annual payments were therefore excluded from assessment, and the reference was answered in favour of the assessee. en-us Fri, 02 Dec 1927 00:00:00 +0530 Sat, 09 Jan 2021 10:15:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=292816 Income derived from agricultural land under a usufructuary mortgage retains its character as agricultural income and remains exempt from assessment under the Income-tax Act, 1922, even where the mortgagee also receives periodic payments that may reflect a return on money lent. A contemporaneous lease back to the mortgagor does not change the legal nature of the arrangement if it is in substance still a usufructuary mortgage. The Court also rejected treating the same land-based receipts as taxable business profit, noting that such a construction would amount to double taxation. The annual payments were therefore excluded from assessment, and the reference was answered in favour of the assessee. Case-Laws Income Tax Fri, 02 Dec 1927 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=292816