The Income Tax Officer did number accept this claim.
He, therefore,held that the companypensation raceived by the respondent was its agricultural income and, therefore, number liable to tax.
The high Court therefore, granted Leave, hence this appeal.
Therefore, the agricultural character of the land did number undergo any change.
Its application under Section 66 2 of the Income Tax Act, 1922 was allowed and the Tribunal.
In support of this companytention.
Section 3 of this Act provided for requisitioning of land and according to Section 4 the requisitioned land companyld be used or dealt with An such manner as may seem expedient to the State Government.
The respondent got Rs.
In other words, the finding of fact of the Tribunal was that the land in question was being used by the respondent for agricultural purposes in the relevant accounting year, and also in the earlier years, and the said land even after requisition, was being cultivated by the refugees.
the department then filed an appeal before the Tribunal, but without success.
The respondent is a companypany having tea estates in Assam.
The land companyld also be acquired by the State Government after necessary numberice.
It has been companytended by the learned companynsel for the appellant that the companypensation paid for requisitioning of the agricultural land was number agricultural income and the same was liable to tax.
The respondents lands were in Singrimari and were requisitioned under Section 3 1 of the Act in January and May, 1949.
was exempt from the levy of income tax or number.
The appellant then filed an application under Section 66 1 of the Income Tax Act, 1922 for stating the case but the same was rejected.
On appeal however, the Appellate Assistant Commissioner found that the respondent was using the requisitioned land for agricultural purposes at the time of requisition and also earlier to that.
the Tribunal found as a act that after requisition the Government of Assam had given that land to refuses who companytinued to cultivate the name.
In order to accommodate refugees and other landless persons, the Assam Legislature passed the Assam Land Requisition and Acquisition Act, 1948 hereinafter referred to as the Act .
Upholding the order of the Appellate Assistant Commissioner.
The claim of the respondent during the assessment year 1958 59, with which we are companycerned in this appeal, was that the amount to companypensation received was exempt from levy of income tax as this amount represented the respondents agricultural income.
1,24,638/ as companypensation.
J U D G M E N I KIRPAL.J. The only question for companysideration in this appeal is whether the companypensation received by the respondent, on its agricultural land being requisitioned.
