1969 (2) TMI 31

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.... storm some time in May, 1959, and on the basis of the assessment it was found that 773 mds of green leaf had been lost by the assessee. There was an insurance policy. It appears from the said insurance policy that the insurance primarily covered the risks against fire, theft, pilferage and non-delivery, fresh water damage and also loss or damage occasioned by collision, breakage of bridges, derailment or accidents of a like nature whilst being conveyed by train or motor-truck. The said insurance policy contained a special clause called " Hail Clauses " which, inter alia, provided as follows : " In the event of any crop being damaged by hail the assured's garden manager shall forthwith summon two neighbouring planters who shall certify t....

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....ng business of the assessee and as such is connected with the agricultural operation, namely, planting, growing and maintaining tea bushes. The Tribunal, therefore, came to the conclusion that the receipt in question was entirely a receipt connected with the agricultural operation and as such represented agricultural profit. Therefore, it is entitled to exemption from income-tax under section 4(3)(viii) of the Indian Income-tax Act, 1922. On an application being made, the Tribunal referred to this court the following question under section 66(1) of the Indian Income-tax Act, 1922 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 15,465 was agricultural income within t....

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.... apportionment but if the rules were framed and operated as statutory rules, an assessment might be made on such portion of the profits of the company as did not fall within the description "agricultural income". The Indian Income-tax Rules, 1922, were framed thereafter. Reading the insurance policy we are of the opinion that this sum of money which has been paid by the insurance company under "Hail Clauses" was in respect of the crop being damaged by hail and that relates to the agricultural operations carried on by the assessee. In the case of Raghuvanshi Mills Ltd. v. Commissioner of Income-tax, the assessee-company had insured its mills with certain insurance companies and also had taken out certain policies of the type known as "con....