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TMI Blog1962 (11) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... from tea plantations and from rubber plantations is therefore based on good reasons. Thus the provisions of Explanation 2 are not discriminatory against agricultural income from rubber plantations. - Petitions Nos. 237 to 239 of 61 - - - Dated:- 1-11-1962 - DAYAL, RAGHUBAR, DAS, S.K., KAPUR, J.L. ,SARKAR, A.K. AND HIDAYATULLAH, M., JJ. For the Petitioner: S. T. Desai, J. B. Dadachanji, O. C. Mathur, Ravindar Narain,. For the Respondent: A. V. Viswanatha Sastri and V. A. S. Muhammed JUDGMENT The judgment of the court was delivered by RAGHUBAR DAYAL J. The Travancore Rubber and Tea Co. Ltd., hereinafter called the company, and one of its directors and members, have filed these petitions praying for a declaration that the Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with section 60 of the Agricultural Income-tax Act. The High Court decided against the company holding that such expenditure was not to be deducted in computing the agricultural income. The company came to this court against the order of the High Court and this court held, by its judgment dated December 15, 1960 (Travancore Rubber and Tea Co. Ltd. v. Commissioner of Agricultural Income-tax [1961] 41 I. T. R. 751; [1961] 3 S. C. R. 279), that such expenses were allowable under section 5(j) of the Agricultural Income-tax Act in computing the assessable income. Thereafter, the Governor of Kerala State promulgated an Ordinance which was subsequently repealed by the Amendment Act of 1961. The Amendment Act was deemed to have come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricultural incomes as defined for the purposes of the enactments relating to Indian income tax". The definition in the Income-tax Act is incorporated by reference in the Constitution and serves to demarcate the bounds of "agricultural income". The relevant portion of the definition of "agricultural income" in the Agricultural Income-tax Act is also in the same terms as the corresponding definition of "agricultural income" in the Indian Income-tax Act, 1922. Section 5(j) of the Agricultural Income-tax Act provides that the agricultural income of a person shall be computed after making deductions of any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e gross receipts of a person but such receipts after deducting the necessary expenses incurred for the purpose of getting those receipts and that such had been the concept of the Constitution-makers when they used the word "income" in entry No. 82 of List I and entry No. 46 of List II, of the Seventh Schedule to the Constitution. In support of this contention reference was made to the legislative practice in the law of income-tax in England, to the dictionary meaning of the word "income" and to certain meanings mentioned in Stroud's Judicial Dictionary and Words and Phrases by Burrows. We do not consider it necessary to deal with this contention at length as this court had occasion to consider this aspect thoroughly in Navinchandra Mafatlal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted States or in the Commonwealth of Australia but because such was the normal concept and connotation of the ordinary English word 'income'. Its natural meaning embraces any profit or gain actually received." It is therefore clear that the word "income" in the relevant provision of the Constitution has a very wide meaning and is not restricted in its meaning as suggested for the petitioner. The next contention for the appellant is that Explanation 2 is discriminatory and contravenes the provision of article 14 of the Constitution. There is nothing discriminatory in the provisions of Explanation 2 to section 5. It is applicable to agricultural income derived from all crops except tea. The question of the applicability of Explanation 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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