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Issues:
1. Interpretation of Section 2(1) and 3 of the Income Tax Act regarding the taxation of rent derived from patni leases. 2. Determination of whether the rent derived from patni leases is agricultural income exempt from assessment. 3. Assessment of the portion of rent from patni leases subject to Income Tax. 4. Refusal of the Commissioner of Income Tax to state a case for the opinion of the High Court under Section 66(2) of the Income Tax Act. Analysis: 1. The applicant, a zemindar, sought a Rule against the Commissioner of Income Tax, Bengal, to state a case for the opinion of the High Court under Section 66(2) of the Income Tax Act. The issue revolved around the assessment of rent derived from patni leases, with the applicant contending that the rent should be considered agricultural income and thus exempt from taxation under the Income Tax Act. 2. The primary contention was whether the land in question was used for agricultural purposes, as stipulated in Section 2(1) of the Income Tax Act. The applicant argued that the determination should be based on an examination of the leases to establish if they were granted for agricultural purposes or if the land was used for agriculture when the leases were granted. However, the court emphasized that the crucial factor was whether the rent was derived from land actually used for agricultural purposes during the relevant year. 3. The Commissioner of Income Tax dismissed the applicant's appeal, stating that the question of whether the rent from patni leases constituted agricultural income was a question of fact. The Commissioner correctly noted that the assessment should be based on the actual use of the land rather than the nature of the leases. It was established that a portion of the land leased out was used for non-agricultural purposes, leading to the conclusion that the corresponding rent was non-agricultural income subject to taxation. 4. The court concurred with the Commissioner's decision, emphasizing that the determination of whether the income from patni leases was agricultural or non-agricultural was a factual inquiry. The applicant was advised to provide evidence to challenge the assessment if deemed unfair. Ultimately, the court found no legal question to be addressed in the matter and dismissed the application. In conclusion, the High Court upheld the Commissioner's decision, emphasizing that the classification of income from patni leases as agricultural or non-agricultural hinged on the actual use of the land, making it a factual determination rather than a legal question.
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