1946 (4) TMI 19

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....and there are, and have been for many years, a number of forest trees, khar and wild plants. The Income-tax Officer, in making his assessment in the year in question, included a net sum of Rs. 5,394 in respect of the income derived by the assessee in the accounting year from the sale of timber from his zamindari property. It is out of this assessment that this reference to us has been made. In the statement of the case to us the Tribunal has set out the facts with some care. It has to be borne in mind that the question of law at issue was whether under Section 2(1)(a) of the Indian Income-tax Act the gain derived by the assessee from the sale of the timber mentioned above was entitled to exemption from taxation on the ground that it was agr....

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.... agency. The question is in this form:- "Whether income from the sale of forest trees of spontaneous growth, growing on land naturally and without the intervention of human agency, even if the land is subject to a local rate (assessed and collected by the officers of the Crown as such) is 'agricultural income' within the meaning of Section 2(1)(a) of the Income-tax Act, and as such exempt from income-tax under Section 4(3)(viii) of the Act?" Put in that form, there can in out view be only one possible answer to this questions and that is the answer which the Tribunal itself has given. We do not feel disposed to discuss this at any great length since in our judgment it is a matter which admits neither of doubt nor argumen....