Judgement

BHAGWATI, J.: This Appeal was filed by the Commissioner of Income-tax, Madras against the Judgment and Order of the High Court of Judicature at Madras delivered on a reference by the Income-tax Appellate Tribunal under S. 66(2), Income-tax Act, 11 of 1922 with a certificate under S. 66-A(2) of the Act read with Arts. 133 and 135 of the Constitution.

2. The assessee, a Hindu undivided family, owned about 70 acres of agricultural land at Perur near Coimbatore. It also maintained in the estate 65 cows and 10 pairs of bulls. During the accounting year 1945-46, it received Rs. 28,000 from the Co-operative Milk Supply Union at Coimbatore to which it sold the milk of these cows.

For the assessment year 1946-47 it claimed that the profits from the sale of milk, constituted agricultural income and as such were exempt from payment of income-tax. As no material had been placed before the Income-tax Officer in support of this claim, it was granted an adjournment for furnishing complete materials and thereupon a letter dated the 26-2-1947 signed by the auditors was filed the relevant portion whereof reads:

"The cows are purely pasture-fed and not stall-fed. It is not being run as a commer