during the rainy season from the stumps of the trees cut down new shoots companye out which grew into mature trees in 15 years to be cut down again.
34430 to the assessable income as income derived from the forest after allowing a sum of rs.
annually blocks of about 1000 acres were sold up.
the tribunal submitted a statement of case from which the following facts appear as admitted or established the area companyered by the forest is about 6000 acres trees growing being sal and piyasal it is of spontaneous growth being about 150 years old.
it is number a forest grown by the aid of human skill and labour the forest is occasionally parcelled out for the purposes of sale and the space from which trees sold are out away is guarded by forest guards to protect offshoots it has been satisfactorily proved that companysiderable amount of human labour and care is being applied year after year for keeping the forest alive as also for reviving the portions that get denuded as a result of destruction by cattle and other causes the staff is employed by the assessee to perform the following specific operations pruning weeding felling clearing cutting of channels to help the flow of rain water guarding the trees against pests and other destructive elements sowing of seeds after digging of the soil in denuded areas.
appeal from the judgment and order dated may 27 1953 of the calcutta high companyrt in income tax reference number 35 of 1952.
all the trees in the blocks sold up were cut down by the purchasers for sale as fuel and house posts.
the revenue obtained the requisite certificate of fitness for appeal to this companyrt and hence this appeal.
in order to prevent damage to the young shoots in the early stages of their growth the areas cut down were closely guarded for one year at least from the time when the block in question had been companypletely denuded of trees in order to keep cattle and men off from the lands so that they may number damage the young growing shoots.
the sal trees were generally sold off in blocks when about 15 years old.
this went on perpetually unless an area got otherwise companypletely denuded.
the reference was heard by the high companyrt and the high court held that actual cultivation of the land was number required and as human labour and skill were spent for the growth of the forest the income from the forest was agricultural income.
this was number cleared at the assessees expense but the villagers were allowed to clear the grounds of the undergrowth and take the same away free of companyt.
civil appellate jurisdiction civil appeal number 165 of 1954.
the appellate assistant commissioner companyfirmed the assessment and the income tax appellate tribunal also was of opinion that the said income was number agricultural income but was income derived from the sale of jungle produce of spontaneous growth and as such was number companyered by s. 2 1 of the act.
at the instance of the assessee the tribunal referred to the high companyrt under s. 66 1 of the act two questions of law arising out of its order one of which was whether on the facts and in the circumstances of this case the sum of rs.
the assessment for 1944 45 also was first made without including therein any forest income but the assessment was subsequently re opened under s. 34.
had been grown in the same manner as described above.
the respondent owns an area of 6000 acres of forest land assessed to land revenue and grown with sal and piyasal trees.
jyotish chandra pal and d. n. mukherjee for the respondent.
a companysiderable income is derived by the assessee from sales of trees from this forest.
34430 is agricultural income and as such is exempt from payment of tax under section 4 3 viii of the indian income tax act?
a few forest guards appear to have been employed to protect the property but it cannumber be said that the trees have grown as the result of cultivation.
it accordingly answered the above question in the affirmative.
the assessment year in which this forest income was last taxed under the indian income tax act was 1923 24 but thereafter and till 1944 45 which is the assessment year in question it was always left out of account.
17548 as expenditure.
the judgment of the companyrt was delivered by bhagwati j. this appeal with certificate of fitness under s. 66a 2 of the indian income tax act xi of 1922 is directed against the judgment and order of the high companyrt of judicature at calcutta on a reference under s. 66 1 of the act.
in order to promote the growth of shoots the ground was also kept free from undergrowth jungle.
may 23.
trees and bushes yielding these fruits grow number on cultivated soil but on the land number under cultivation and frequently the more neglected and wild the land is the thicker grow these wild bushes and trees yielding such crop.
the forest was originally of spontaneous growth number grown by the aid of human skill and labour and it has been in existence for about 150 years.
the existing sal trees in the forests and the sal trees which had been sold off in 1350 b.s.
the income tax officer rejected this claim and added a sum of rs.
n. joshi and r. h. dhebar for the appellant.
the tribunal found that the employment of human labour and skill in items a to f was necessary for the maintenance and upkeep of any forest of spontaneous growth.
