1940 (4) TMI 28

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....he question propounded by the Commissioner is as follows :- "Whether the allowance made to the assessee in accordance with the order Exhibit B and transfer to him in accordance with the letter Exhibit C, is agricultural income within the terms of Section 2 (1) of the Income-tax Act". The assessee is the adopted son of the late Musammat Moharmani Kuer. It appears that an ancestor of the asses....

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.... that the widow as a member of this family had some indeterminate claim to consideration from the Raj. The Court of Wards, however, were firmly of opinion that the widow was an undesirable lessee and at that time the present assessee was a minor. In these circumstances the Court of Wards decided that they would resume the lands and declined to give the widow a new lease; but in recognition of her ....

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....in law agricultural income within the meaning of Section 2 (1), Indian Income-tax Act. In my judgment this annual payment of Rs. 4,500 made to the assessee cannot possibly be regarded as agricultural income. It is not derived from any lands. It is in fact an annual ex gratia payment made by the Bettiah Raj to the assessee in consideration of some services rendered by an ancestor of his in the r....

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....nue it is true that it is stated that the Court would resume Khas management, but what is meant is that the Court was resuming possession on the expiry of the lease. Mr. Majumdar had referred the Court to a letter from the Manager of the Bettiah Estate to the Collector of Champaran, dated the 30th July, 1919, and the letter makes it clear that the intention of the Court of Wards was to resume poss....