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TMI Blog1942 (12) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... equest, under Section 66 (2) of the Indian Income-tax Act, 1922, with a statement of the case and the opinion of the respondent rejecting the appellant's claim to exemption. The question, of law referred to the Court was: Whether in the facts and circumstances of the case the sum of ₹ 49,500 received by the assessee as his remuneration as Mutawalli was 'agricultural income ' within the meaning of Section 2 (1) of the Income-tax Act ? For the assessment year 1938-39 the appellant was assessed for income-tax purposes on an amount which included the sum of Es. 49,500 under the head of salaries, which was the appellant's remuneration as Mutawalli for the year of account and included both current salary and arre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by him as his remuneration in terms of the Scheme is agricultural income as defined in Section 2 (1) of the Act of 1922, and that it is therefore rendered exempt from taxation by Section 4 (3) (viii) of the Act. The relevant part of Section 2 (1) is as follows : 2. In this Act, unless there is anything repugnant in the subject or context,- (i) Agricultural income means- (a) any rent or revenue derived from land which is used for agricultural purposes, and is either assessed to land-revenue in British India or subject to a local rate assessed and collected by officers of Government as such. The High Court rejected the applllant's conection, and their Lordships agree with their conclusion. The appellant' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The mortgagee lessee was to be in possession of both properties, and, in his relation to the cultivators of the soil he stood in the position of landlord dealing directly with them and collecting the rents. He had, moreover, to pay the Government revenue, cesses and taxes and his name was registered in the Land Registration Department. He alone was able to sue for rent whether current or arrears, to sue for enhancement or for ejectment and was able to settle land with raiyats and tenants in all the properties; in fact he was in a position to take all proceedings which the mortgagor would have been able to take in the ordinary course if the lands leased and mortgaged had remained in her khas possession. Accordingly, the assessee collec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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