( 1 ) IN this reference under Section 66 (l), Income-tax Act, the Income-tax Appellate Tribunal has referred the following questions to us for answer :

Q. 1--Whether income from the sale of forest trees of spontaneous growth, growing on land which is assessed to land revenue, is agricultural income within the meaning of Section 2 (1) (a), Income-tax Act and as such exempt from income-tax under Section 4 (3) (viii) of the Act ? q. 2--Whether the assesees net receipts from the sale of forest trees were the assessses income liable to income-tax and not merely capital converted into cash?"

( 2 ) AS regards the second question, it was the assessees own case that the forest was being worked for, at least, some time on scientific lines in accordance with a scheme of making profit, there was a regular working plan and the assessee was deriving regular income from the forest and spending money to increase the profit. It was in view of these admissions that Shri Pathak had to concede that the answer to this question must be in the affirmative, i. e. , that the net receipts on the sale of forest trees were the assessees income liable to income-tax and were not merely capital con