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TMI Blog1969 (1) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... following two questions : " (1) Whether arrears of rent of 1359F. and earlier years realised in 1360F. are to be included in the agricultural income of the assessee since under the amended law he was not required to own or hold property in the assessment year ? (2) Whether income from groves was agricultural income within the meaning of section 2(1) of the U. P. Agricultural Income-tax Act? " The instant reference relates to the assessment year 1364 Fasli of which the previous year is 1363F, while the connected reference relates to the assessment year 1361F., of which the previous year is 1360F. At the outset it is admitted between the parties that the first question does not arise out of the proceedings for the assessment year 1364F. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Board that the arrears of rent arose out of agricultural income derived from land which was no longer owned or held by the assessee during the assessment year 1361F. inasmuch as it had vested in the State on 1st July, 1952, i.e., on the commencement of the year 1360F. The Revision Board referred to section 3 of the U.P. Agricultural Income-tax (Amendment) Act, 1953, and observed that it was immaterial that the property was not owned or held during the assessment year. Section 3 of the Act charges tax on the total agricultural income of the previous year of every person. Section 2(13) defines a "previous year " as the " twelve months ending 30th June preceding the year for which the assessment is to be made ". In a number of cases, whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee during the previous year must be the land out of which the agricultural income has been derived. Now, it has been held by a Division Bench of this court in Kunwar Trivikram Narain Singh v. State of U. P. , that if an assessee owned or held any property during the relevant year he was a " person " for the purposes of the Act and it was immaterial that the agricultural income in respect of which he was assessed proceeded out of property which was no longer owned or held by him during that year. Accordingly, we answer the first question in the affirmative in the connected reference. The second question is whether income from groves constituted agricultural income within the meaning of section 2(1) of the Act. For the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and food products for human beings and beasts.... but must be understood as comprising all the products of the land which have some utility either for consumption or for trade and commerce and would also include forest products . . . . " There is no dispute that the groves in question in the instant case are groves where the trees have been planted on the land, and that the basic agricultural operations were performed to foster their growth and preserve them. The income from the groves would, in our opinion, constitute agricultural income. The second question is, therefore, answered in the affirmative in both the references. We, therefore, answer the two references as follows : Agricultural Income-tax Reference No. 9 of 1965. Ques ..... X X X X Extracts X X X X X X X X Extracts X X X X
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