TMI Blog1980 (4) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... F. 52(8) DIVT/55 dated 30-8-1956 shall be included in the 'total agricultural income' for determining the rate of agricultural income-tax under section 3 read with section 17 of the Rajasthan Agricultural Income-tax Act, 1953 ? " The brief facts, necessary for the decision of this, reference, are that the assessee was assessed on a total income of Rs, 4,49,685 on which tax was computed at Rs. 1,87,912.19. Subsequently, the Government issued a notification No. F. 52(8) Est./55, dated August 30, 1956, under s. 80 of the Act exempting all the jagirdars from agricultural income-tax in respect of so much of their total agricultural income as was spent on the maintenance of medical, veterinary and educational institutions for the public. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. On second appeal, the Agricultural Income-tax Appellate Tribunal held by its order dated August 7, 1971, that the notification dated August 30, 1956, granted exemption from agricultural income-tax to the jagirdars in respect of so much the total agricultural income as was spent for the maintenance of medical, veterinary or educational institutions for the public purpose and this amount alone could be excluded from the total agricultural income of the assessee and after excluding this amount the remaining amount of the total agricultural income was chargeable to agricultural income-tax at the rate applicable to the total income. On the question of interest the Tribunal held that as there was no provision under the Act for allowing in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 4 of the Indian Income-tax Act." The notification dated August 30, 1956, was issued under the provisions of the above-noted section. If the Legislature intended that the amount spent by the jagirdars on educational and other institutions should not form part of the agricultural income, then the authority concerned could have very well granted an exemption under s. 5 of the Act. In our opinion, the notification is covered by s. 17 of the Act, which reads as under : "17. Amount of tax when income partly exempt.- Where there is included in the total agricultural income of any assessee any income exempted from agricultural income-tax by or under the provisions of this Act the agricultural income-tax payable by the assessee shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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