1969 (1) TMI 23

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.... was agricultural income within the meaning of section 2(1) of the U. P. Agricultural Income-tax Act? " The instant reference relates to the assessment year 1364 Fasli of which the previous year is 1363F, while the connected reference relates to the assessment year 1361F., of which the previous year is 1360F. At the outset it is admitted between the parties that the first question does not arise out of the proceedings for the assessment year 1364F., and must be confined to the reference relating to the assessment year 1361F. We, therefore, proceed to examine the question in the reference relating to alone and need not return any answer to that question for the assessment year 1364F. The assessee, Raja Anand Brahm Shah, owned and held ....

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....ferred to section 3 of the U.P. Agricultural Income-tax (Amendment) Act, 1953, and observed that it was immaterial that the property was not owned or held during the assessment year. Section 3 of the Act charges tax on the total agricultural income of the previous year of every person. Section 2(13) defines a "previous year " as the " twelve months ending 30th June preceding the year for which the assessment is to be made ". In a number of cases, where the property had vested in the State under the U.P. Zamindari Abolition and Land Reforms Act, it had been contended that the definition of " person " under section 2(11) contemplated a person who continued to own or hold property in the assessment year. If he ceased to own or hold property....

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...." person " for the purposes of the Act and it was immaterial that the agricultural income in respect of which he was assessed proceeded out of property which was no longer owned or held by him during that year. Accordingly, we answer the first question in the affirmative in the connected reference. The second question is whether income from groves constituted agricultural income within the meaning of section 2(1) of the Act. For the assessment year 1361F. a sum of Rs. 5,752 was assessed as the agricultural income of the assessee from groves, and for the assessment year 1364F. a sum of Rs. 825-7-0 was assessed as such income. In Commissioner of Income-tax v. Raja Benoy Kumar Sahas Roy , the Supreme Court pointed out that the term " ....