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1. This reference arises out of the assessment of income-tax under Act VII of 1918 of the income, derived by the Zamindar of Singampatti from forests and fisheries within the ambit of his zamindari. The assessee objects to the assessment (1) on the ground that the income is agricultural income within the meaning of Section 4 of the Act and, therefore, not chargeable to income-tax; (2) that the assessment is illegal as contravening the terms of his permanent sanad for the zamindari and the provisions of Regulation XXV of 1802.

2. It is convenient to consider first the effect of the sanad, a copy of which has been filed before us, and the terms of the Regulation. The sanad is a lengthy document largely reproducing the language of the Regulation under which it was granted. Its general effect is this--in view of the bad effect of fluctuations in the assessment of land revenue, both in obstructing the development of the country and diminishing the security of property, the British Government has resolved "to fix for ever a moderate assessment of public revenue on the lands" held by Zamindars and others; and to that end has fixed the permanent annual jumma (total, demand) of the Singampatti zamindari at 2,300 star pagodas. Clause (4) of the sanad says:

13. We would answer the Reference by saying that the income from forests and fisheries in the Singampatti zamindari is not liable to income-tax.