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Mustafa Ali Khan vs The Commissioner Of Income-Tax on 12 July, 1948

In Raja Mustafa Ali Khan v. Commissioner of Income-tax, referred to already. their Lordships of the Privy Council had to consider whether the amounts received as Malikana constituted rent or revenue within the meaning of section 2(I)(a) of the Act. The facts of that case were that a proprietor of certain villages alienated several of them for monetary consideration reserving, however, the right to receive a small annual cash payment by virtue of his being the lord of the parganas. The amounts of Malikana were fixed by settlement and were not variable. It was contended before their Lordships that the receipt of Malikana is referable to land and, therefore, would be agricultural income. That contention w as repelled by the Judicial Committee and it was held that the land was in no real sense the source of income, even though it may be regarded as secured by a charge. If an income is derived from a land which not used for agricultural purposes it cannot be said that it is agricultural income.
Bombay High Court Cites 16 - Cited by 43 - Full Document
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