75,000/ on the footing that the 500 acres of forest lands were leased for clear felling.
They then proceeded to quote r. 7 framed under the Madras Preservation of Private Forests Act, 1949, and after setting out companyditions b c observed that the felling of the trees under the clear felling method will number permit a removal of the trees along with their roots.
It is companymon ground also that the trees in the forest were of spontaneous growth.
On that view the Court held that the receipt of Rs.
There is numbersuggestion that there were any casurina trees in the forest lands let out to the lessees.
Appeal by special leave from the judgment and order dated August 3, 1966 of the Kerala High Court in Income tax Referred Case No.
The departmental authorities.
810 of 1967.
the Tribunal and the High Court have expressed different views on the import of the expression clear ,felling and about the true effect of the agreement.
After the Appellate Assistant Commissioner remanded the case to the Income tax Officer the latter submitted the remand report and at that time the agreement was produce.
affected the value of the property as a result of the clearance, the lands became more productive and the receipt was a revenue income.
75,000/ was a revenue receipt and number a capital receipt as held by the Appellate Tribunal.
The High Court was of the view that the clear felling of forest lands meant cutting trees and number removal of the roots so that there would be regeneration, future growth of the roots and the stumps and on that account the receipt was of revenue nature.
The Appellate Assistant Commissioner held that the trees being of spontaneous growth and the falling of the trees number having 1 1961 41 I.T.R. 313.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
75,000 received under an agreement for cutting and removing trees from 500 acres of Mangayam Katchithode forest.
49 of 1965.
T. Desai, R.N. Sachthey and B.D. Sharma for the respondent.
75,000/ being income from felling of trees from forests is number subject to income tax ?
Sardar Bahadur Saharya. ,
The Income tax officer taxed the amount of Rs.
for the Intervener.
Javaram, for the appellant.
It appears that before the Income tax Officer the agreement dated Sept. 11, 1957 was number produced.
The Judgment of the Court was delivered by Shah, J. In companyputing the income of the appellants father to tax for the assessment year 1959 60 the Income tax officer included Rs.
At the instance of the Commissioner of Income tax, the Tribunal referred the following question to the High Court of Kerala Whether on the ,facts and in the circumstances of the case, the Income tax Appellate Tribunal was companyrect in holding that Rs.
In Commissioner of Income tax, Madras v.T. Manavedan Tirumalpad, 1 a Full Bench of the Madras High Court held that the receipts ,from sale of timber trees by the owner of unassessed forest lands in Malabar were revenue and number capital.
The Appellate Assistant Commissioner after calling ,for a report on certain facts companyfirmed the order.
