1901 (7) TMI 1

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..... ion roll under the Cess Act with regard to the profits of this mela and submitted it. The Collector then fixed a certain amount of road-cess on the profits of the mela, which he has realized from the plaintiff, and the plaintiff now sues to recover this road-cess from the defendants, as well as the rent due under the lease. 2. The First Court disallowed the plaintiff's claim for road-cess. The Subordinate Judge has allowed it, holding that the defendants are tenure-holders within the definition of tenure-holder contained in the Cess Act. 3. The defendants appeal. It is found by the Munsif to be the case, and it has been admitted before us, that the defendants have to pay Income Tax on the profits of the mela, and that they ought n .....

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..... tenure-holder would, therefore, seem to be wide enough to include the defendants. But notwithstanding this fact we do not think that it can have been intended by the legislature to assess road cess tax, land from which profits subject to Income Tax are derived, except when such land is used for agricultural purposes. It is to be noted that the land, on which the mela annually takes place, is assessed with road-cess in its agricultural character, and the defendants do not pay road-cess on profits derived from it, when it is not used for agricultural purposes. 5. The Munsif says the profits of the mela are not derived from the soil of the lands, but from shop-keepers for their shops in the mela, and he argues that shop are not included wit .....

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..... ; valuation should not, however, be made on trade profits or on benefits derived by traders (Boards' cess proceedings of the 12th November 1898, No. 2. collection 10, file 96 of 1897. 9. The Board of Revenue has, therefore, clearly come to the conclusion that the profits derived from land used for the purpose of a mela are assessable with road-cess, and no doubt it may be argued that the land is agricultural land and the profits of the mela are derived from the use of this land. But for the reasons already given we do not think this is a correct view to take, and the rule in question would seem to us to be ultra vires. It does not appear to be such a rule as the Board of Revenue is authorised to make under the provisions of Section 1 .....

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