CHAGLA, C.J. :- A very important question arises on this reference as to the liability of an assessee to pay tax on his dividend income when the dividend has been received from a company which derives its profits from agricultural activities and whose income or part of it is exempt from tax on the ground that it constitutes agricultural income.

2. The facts are very few. The assessee held shares in two tea companies, Patrakola Tea Co., Ltd., and the Bishnauth Tea Co., Ltd., and in the year of account she received dividends aggregating to Rs.2,750 on the shares that she held. These two tea companies carry on the business of growing and manufacturing tea. 40 per cent of the income of the tea companies was taxed as income from the manufacture and sale of tea, while 60 per cent was exempt from tax as agricultural income. This was pursuant to R.24 of the Indian Income-tax Rules. The contention of the assessee before the Tribunal was and it is before us that 60 per cent of this dividend income was agricultural income in her hand and therefore was exempt from tax. A large number of authorities have been cited at the bar and our attention has been drawn to various observations made