1927 (5) TMI 5

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..... e which is derived for the use of land for storing purchases of food-crops, etc., by merchants, Evidently this does not come within the definition of agricultural income as given in Section 2, Indian Income Tax Act. The income, as derived, is not derived from land used for agricultural purposes and, as such, such income cannot be claimed to be exempt from assessment. 3. With reference to item (vii), i.e., punyaha nazar or nazar paid by tenants of agricultural holdings at-the beginning of the zamindari year, I am of opinion that this also does not come within the definition of agricultural income as given in the Act. This nazar is generally paid by tenants who are actually present on the occasion of the punyaha to the landlo .....

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..... ot recognize such a transfer the landlord is free to take khas possession of the holding. When he does recognize such a transfer, that practically amounts to a sort of new settlement with the transferee and the nazar which is actually paid on the transfer by the transferee really amounts to the capitalized value of a part of the rent. Under such circumstances such nazar would be an income derived from land, and, as such, would come within the definition of agricultural income. Though this fact was not referred to permanently in the judgment, still the effect of such a transfer and of such a recognition amounts in law to a sort of new settlement by the landlord with the transferee. That being so, the case covered by the Full Bench decision .....

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..... land. In cases of partition the landlord may rightfully demand certain fees. In cases of holdings and tenures, if the tenants choose to partition the same, they can do it with the consent of the landlord, and the consent of the landlord may have to be purchased, and in those cases the fee which the landlord would get may come under the definition of agricultural income as given in the Act. But in this reference we are concerned with the nazar for petitions dealing with the questions of succession, etc., and not with nazar paid to the, landlord referred to above, for obtaining the recognition of the landlord in matters of succession or partition or for settlement. Such being the case, such nazar for petitions would not come within the defi .....

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