1940 (3) TMI 14

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....on of this Court under Section 66 (2) of the Income Tax Act. The applicant is a zemindar who has granted patni leases over a large portion of his land. Those patni leases were granted many years ago when the land was almost entirely used for agricultural purposes and were for fixed rents. Under the Income Tax Act agricultural income is not taxable. The Income Tax Officer did not assess the w....

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....ncome. (2) Whether on proper construction of Section 2 (1) and 3 of the Act and of the leases produced before him the rent derived from the Patnidars and other permanent leases was agricultural income and exempt from assessment. (3) Whether the basis of the estimate of the assessable rent is in accordance with law.         The Commissioner di....

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.... agricultural purposes. The assessee has contended that that question has to be decided on an examination of the leases to see if they were granted for agricultural purposes or by the fact that when the leases were granted the land was used for agricultural purposes. In my opinion that contention is negatived by the clear words of the statute which says "rent derived from land which is used for....

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.... lands is agricultural or not stands to be determined not with reference to the nature of the leases by which the lands were let out but by reference to the use to which the land has been put." Later he says with reference to the case that has been cited the Income Tax Reports : "Now it is established from the report of the Income Tax Officer that a certain portion of the land which th....