1944 (9) TMI 25

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.... of forest trees, the assessment year being 1940-41. In the later case the year of assessment was 1941-42 and the sum in question realised from the same source was Rs. 3791. There is, we think, no material difference in the question referred. In the first reference the question is: Whether income from the sale of forest trees growing on land naturally and without the intervention of human agency, even if the land is assessed to land revenue, is agricultural income within the meaning of S. 2 (1) (a), Income-tax Act, and is as such exempt from income-tax under Section 4 (3) (VIII) of the Act 2. In the second reference the words "in the circumstances of the case" have been inserted after the word "whether," and the words "and spont....

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....which the forest stands pays, land revenue. Nowhere is there any suggestion that the receipts do not constitute income but capital. Learned Counsel for the Assessee contended that the word "income" was used loosely throughout. This may be so, but nevertheless it is clear that the question whether the receipts constituted income or capital was never raised. Learned Counsel referred us to the case in ('29) 16 A.I.R. 1929 ALL. 819: 124 I. C. 467, Shiva Prasad v. Commissioner of Income-tax, U. P. In that case a Bench of the Allahabad High Court held on the terms of Section 66 as it then read that the object of the reference (by the Income-tax Commissioner) was the decision by the High Court "of the question of law that arises in the case". ....

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.... It was indeed faintly suggested by the learned Counsel that the words "any question of law" imply that the applicant can ask the Tribunal to refer any (unspecified) question of law that may be thought to arise from their order. We have no doubt that this is not intended. The application has to be made on a prescribed form and this shows that the applicant must formulate concisely the question of law which he desires to raise. In our opinion this is clearly the intention of the section. It is true that there still remain in the section references to the question (or questions) of law "raised thereby", referring to the statement of the case, and it has been held in some cases on a consideration of this expression that the High Court is not r....