Commissioner of Income Tax vs Satinder Singh

D.K. Jain, J.—At the instance of the revenue, the following question has been referred for the opinion of this Court u/s 256(1) of the income tax Act, 1961 ("the Act"), by the Tribunal, arising out of IT Appeal Nos. 4891-4892 of 1974-75, pertaining to the assessment years 1970-71 and 1971-72:

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the amounts of Rs. 20,074 and Rs. 13,699 received by the assessee during the accounting year relevant to the assessment years 1970-71 and 1971-72 respectively on account of 50 per cent share in the Jagir income are his agricultural income and, therefore, exempt from tax?

The issue which has been referred to this Court for consideration is as to whether the Jagir income received by the assessee was to be treated as his agricultural income entitled to exemption from tax. There is no appearance on behalf of the assessee. We have, accordingly, heard Mr. R.D. Jolly, the learned senior standing counsel for the revenue.

From the order of the Tribunal for the relevant assessment years we find that while holding that the income derived by the assessee from Jagir was his agricultural income and, therefore, exempt from income tax, the Tribunal has relied on its earlier order, dated 22-10-1974, pertaining to the immediately preceding assessment years 1968-69 and 1969-70. The order of the Tribunal pertaining to the said assessment years was subject-matter of IT Reference Nos. 271 and 272 of 1975. These two references were disposed of by this Court on 21-11-2000, since reported as Commissioner of Income Tax Vs. Satinder Singh, and it has been held that the Jagir income received by the assessee was to be treated as his agricultural income. Exempt from tax. Following the said decisions, the question referred is answered in the affirmative, that is in favour of the assessee and against the revenue. No order as to costs.