P.Chakravartti, C.J. - (1.) This is a reference under Section 63(1) of the Bengal Agricultural Income-tax Act of a single question of law which relates to the computation of income derived from land by agriculture through cultivation thereof by adhiars. The facts stated to us by the Tribunal are as follows;
(2.) The assessee holds some agricultural lands in Cooch Behar which he cultivates through adhiars. The adhiars, as their name implies, receive for their labours a half-share of the produce grown, while the other half is received by the assessee. In the year 1957 B. S., relative to the assessment year 1951-52, the total yield of paddy from the assessee's lands was 4,500 maunds. After paying a half-share of that quantity to the adhiars, the assessee was left with 2250 maunds which he sold to the District Procurement agents at Rs. 7-15 per maund. In making the assessment, the Income-tax Officer took a view of the sales which was not accepted by the Assistant Commissioner and to which it is no longer necessary to refer. The Assistant Commissioner was satisfied from the papers produced before him that the entire quantity of 2250 maunds had been sold to the District Procurement agents, although, before the Income-tax Officer, the assessee himself appears to have tried to make a different case. The method followed by the Assistant Commissioner in computing the assessee's income from the lands was that he first determined the market value of the total yield of paddy, comprising both the share paid to the adhiars and the share received by the assessee, and then he allowed a deduction of one-half of that value in accordance with the proviso to Section 7(1) of the Act. The assessee next appealed to Tribunal and his contention in the appeal was that he was liable, under the opening paragraph of Section 7, to be taxed only on the income which he had received and therefore the share taken by the adhiars which he had not received ought to have been excluded from the computation altogether. The Tribunal did not accept that contention and upheld the method of computation adopted by the Assistant Commissioner.
(3.) The assessee next applied to the Tribunal under Section 63(1) of the Act for a reference to this Court of five questions of law. The Tribunal held that four of the questions did not arise out of the appellate order and could not be referred. It is stated that, ultimately, the assessee's Advocate did not press those questions. The fifth question was held to be a question of law, arising out of the appellate order and it was referred to this Court in the following terms: "Whether on the facts and in the circumstances of the case, the basis and the method of computation adopted by the Assistant Commissioner, for the purpose of granting allowances for costs of production, and confirmed by the Tribunal, are in accordance with the provisions of the Bengal Agricultural Income-tax Act, 1944, and Rule 4 framed thereunder.";