TaxTMI 
TaxTMI 
1978 (2) TMI 43
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....th s. 10(1)(a) read with s. 3(3) of the Karnataka Agrl. I.T. Act, 1957, ignoring s. 10(2)(a) of that Act ?" s. 3(3) of the Karnataka Agrl. I.T. Act, 1957 (hereinafter referred to as "the Act"), will have no application to a case where a person holds agricultural lands as a trustee and receives the agricultural income partly for his own benefit and partly for the benefit of others. s. 3(3) of the Act applies only if the person holds property as tenants-in-common and derives agricultural income. If a person holds agricultural lands as a trustee and receives agricultural income partly for his own benefit and partly for the benefit of others, it is impossible to say that the property is held as tenants-in-common. The only other question t....
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....d the land exclusively for his own benefit." It is clear from the language of s. 10(2)(a) of the Act that the question of application of the said provision arises only if the case does not fall under s. 10(1)(a) of the Act. If the case falls under s. 10(1)(a), it will not be necessary to examine as to whether s. 10(2)(a) applies. The essential question for consideration is as to whether s. 10(1)(a) applies to the case of a person holding agricultural lands as a trustee and receiving agricultural income partly for his own benefit and partly for the benefit of others. The Division Bench which made the reference has proceeded on the assumption that the rule laid down by this court in R. T. N. Punja v. CIT [1966] 2 Karnataka Law journal 275 ....
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....But, it appears to us that, having regard to the context in which the expression "is entitled to receive on behalf of any person" is used, it has to be understood as meaning "entitled to receive for the benefit of any person". If the expression is not so understood, s. 10(1)(a) of the Act, so far as trustees are concerned, cannot be given effect to and the provision to that extent becomes otiose. This court had occasion to construe s. 41 of the Indian I.T. Act, 1922, in G. T. Rajamannar v. CIT [1964] 51 ITR 339 (Mys). Though in s. 41(1) of the Indian I.T. Act, 1922, similar expression has been used, viz., "on behalf of" as is used in s. 10(1)(a) of the Act, their Lordships construed those words as meaning "for the benefit of", as, otherwise....
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....for the benefit of other beneficiaries, he receives the said income in his capacity as a trustee. Besides, under the definition of the word "person" occurring in s. 2(1)(p) of the Act, "person" means a person among others who holds property partly for his own benefit and partly for another. Therefore, a person who holds agricultural lands as trustee and receives agricultural income partly for his own benefit and partly for the benefit of others, can be assessed under s. 10(1)(a) of the Act and the question of invoking s. 10(2)(a) does not arise. The case dealt with by this court in Punja's case [1967] 63 ITR 442 (Mys) was governed by s. 3(3) of the Act. But their Lordships also proceeded to examine as to whether the case also falls under....