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TMI Blog1989 (7) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... It was the contention of the assessee before the Income-tax Officer that the income of the assessee received by the sale of tender forms is closely connected with the agricultural operations done by the assessee and, therefore, the same is agricultural income not taxable under the Central Act. The Income-tax Officer took the view that the income by way of sale of tender forms has nothing to do with the agricultural activities of the company and, therefore, cannot be treated as agricultural receipts. On appeal, the Commissioner of Income-tax (Appeals) came to the conclusion that the receipts arose from a single substantial activity of the assessee which was agricultural in nature and so could not be brought to tax under the Central Act. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the amount of Rs. 11,120 received by the applicant by the sale of tender forms to the tenderers during the assessment year 1977-78 is taxable under the Income-tax Act, 1961 ? " We heard counsel. The only contention pressed before us is that the amount received by the assessee from the sale of tender forms to tenderers is agricultural income as the sale is closely connected with agriculture and the sale of agricultural produce. If the amount received by the sale of tender forms is not agricultural income, then it will be income taxable under the Central Act. This position has not been disputed before us. In the decision in Father Epharam v. CIT [1989] 176 ITR 78, this court considered the scope of the definition of "income" under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iest of the monastery for mass stipends would be voluntary gifts depending entirely upon the goodwill of the donors and would not cease to be of a "casual and non-recurring nature" by reason merely of the fact that the donations are repeated.' " Therefore, the amount received by the sale of tender forms by the assessee will be income taxable under the Act, if the same is not agricultural income. "Agricultural income" is also defined under the Act as under : "2. (1) ' agricultural income ' means-- (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes ; (b) any income derived from such land by-- (i) agriculture ; or (ii) the performance by a cultivator or receiver of rent-in-kin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition, as such receipts have nothing to do with agriculture. The connection, with agricultural operations, of such income is also very remote. It also cannot be considered that the sale of tender forms is incidental and so intimately connected with agricultural operations so as to make it part of agricultural operations. We are, therefore, of the opinion that the amount received by the sale of tender forms is not agricultural income but income under the Income-tax Act taxable thereunder. In the light of the above, our answer to all the questions referred to us is in the affirmative, that is, in favour of the Revenue and against the assessee. A copy of this judgment under the seal of this court and the signature of the Registrar sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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