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Issues:
Interpretation of items (v), (vii), and (viii) in relation to agricultural income for assessment under the Indian Income Tax Act. Analysis: 1. Item (v) - Fees received from land used for storing purchases of crops: The court held that income derived from the use of land for storing food crops by merchants does not qualify as "agricultural income" under the Income Tax Act. The income is not directly derived from agricultural activities on the land, making it liable for assessment. 2. Item (vii) - Punyaha nazar or nazar paid by tenants: The court determined that the nazar paid by tenants to landlords during ceremonies does not constitute agricultural income. This payment is voluntary, lacks uniformity, and is not directly linked to agricultural activities on the land, thus making it subject to assessment. 3. Item (viii) - Nazar paid for petitions on succession, settlement, and partition: The court clarified that nazar paid for petitions unrelated to agricultural activities on the land is not exempt from assessment. While landlords may be entitled to fees for recognizing succession or partition, nazar for petitions dealing with these matters does not qualify as agricultural income under the Act. 4. Full Bench Case Reference: The judgment referenced a case involving nazar paid for the recognition of a non-transferable holding. It highlighted that such payments could be considered agricultural income as they are directly linked to land transactions and can be exempt from taxation under the Act. 5. Conclusion: The court, including both judges, unanimously agreed that items (v), (vii), and (viii) do not qualify as agricultural income and are thus assessable under the Income Tax Act. The judgment was forwarded to the Commissioner of Income Tax for further action as per statutory provisions.
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