TaxTMI 
TaxTMI 
1984 (6) TMI 100
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....fruit garden beside the lawns in front, back and sides. The property in question was rented out to the Indian Explosives Limited at a total monthly rent of Rs. 2,000 per month with rental bifurcation in respect of different parts of the property, as under: Rs. "(a) Rent for accommodation on GF 750 per month (b) Hire for fixtures and fittings (detailed in Schedule) on GF 300 per month (c) Rent for one bedroom with attached bathroom on FF 200 per month (d) Hire for fixtures and fittings, namely, for first floor room 50 per month (e) Rent for garage 200 per month (f) Rent for two servant quarters at the rate of Rs. 150 per month each 300 per month (g) Fixed price of fruits of all the fruit trees (except one Mango Langra plant and one Al....
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....i) rent or revenue derived from, (ii) land which is situated in India, and (iii) is used for agricultural purposes. He submitted that from the deed of tenancy, it was apparent that the garden was separately rented out and he made available to us the copy of letter dated 5-3-1981/11-3-1981 and 30-7-1976 in that regard. His submission was that after the substitution of section 2(1)(a) of the Income-tax Act, 1961 ('the Act') with retrospective effect from 1-4-1962, as per the Taxation Laws (Amendment) Act, 1970, it was apparent that the income in question was agricultural income by mere reading of the definition given in the said section. 5. The learned senior departmental representative R.K. Bali, on the other hand, beside relying on the ord....
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....ear the servant quarters. The ITO, however, challenged in the assessment order, as per his observations, extracted and placed above, that no evidence was produced to show that rental income of Rs. 2,000 per month included Rs. 2,400 on account of value of fruits but when it came up to the stage of the AAC, she only confirmed the finding on the interpretation of section 2 giving definition of agricultural income. With the abovestated uncontroverted facts, it is also apparent that plants in the garden surrounding the bungalow of the assessee, were not of spontaneous growth and there is nothing vague once it is mentioned that all the plants are given to the tenant for plucking the fruits except the two which are specifically there near the serv....
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....f spontaneous growth but of plants which were grown being fruit trees. Similarly, the case of Maharaja Pratap Singh Bahadur again pertains to malikana and there also it was held that the malikana was not agricultural income inasmuch as it was not established by the revenue authorities that it was rent or income derived from land which was used for agricultural purposes. This was a case under the agricultural income-tax and even careful reading of this supports the contention that of the assessee. Reliance of the learned departmental representative on the case, of Kunwar Trivikram Narain Singh is also misplaced. In that case, facts in the background were that there occurred a compromise between the British Government and the then jagirdar, w....