Judgement

GHULAM HASAN, J. : This appeal raises an interesting point of law under the Indian Income-Tax Act.

2. The question referred by the Tribunal to the High Court of Judicature at Bombay was stated thus :

"Whether 60 per cent. of the dividend amounting to Rs. 2,750/- received by the assessee from the two Tea companies is agricultural income and as such exempt under section 4 (3) (viii) of the Act."

Chagla, C. J. and Tendolkar, J. who heard the reference, answered the question in the negative by two separate but concurring Judgments dated March 28, 1952.

3. The facts lie within a narrow compass. The appellant, Mrs. Bacha F. Guzdar, was, in the accounting year 1949-50, a shareholder in two Tea companies, Patrakola Tea Company Ltd., and Bishnauth Tea Company Ltd., and received from the aforesaid companies dividends aggregating to Rs. 2,750/- The two companies carried on business of growing and manufacturing tea. By Rule 24 of the Indian Income-Tax Rules, 1922, made in exercise of the powers conferred by Section 59 of the Indian Income-Tax Act, it is provided that

"Income derived from the sale of tea grown and manufactured by the seller in the taxable territories shall be computed as if