Ram has a salary income (computed) of ₹6,00,000 for the financial year 2019-20. His minor son, Arjun has agricultural income of ₹80,000 for the same financial year. The Assessing Officer clubbed the agricultural income o

The facts of the case are similar to the case of Suresh Chand Talera vs. Union of India (2006) 282 ITR 341 where the M.P. High Court observed that the definition of income under section 2(24) is inclusive and not exhaustive. Hence, the fact that agricultural income has not been specified as one of the items in section 2(24) does not mean that agricultural income is not included in the word "income" which has been used in the Act. Section 10 of the Income tax Act, 1961, provides that in computing the income of the previous year of a person any income falling in any of the clauses mentioned therein shall not be included. The first clause mentioned therein is "agricultural income". Thus, section 10 makes it clear that agricultural income is income but by express provisions therein, agricultural income has been excluded from the total income of an assessee for the purpose of levy of income-tax. Section 4(1) of the Income tax Act, 1961, which is the charging section, provides that while the total income of a person is to be determined in accordance with the provisions of the Income-tax Act, 1961, the rate or rates at which tax will be levied on such income for any assessment year will be stipulated in the relevant Finance Act. The Annual Finance Act provides that the net agricultural income shall be taken into account in the manner provided therein for the purpose of determining the rates of income-tax applicable to the income of the assessee. Therefore, in view of the above provisions, the High Court held that agricultural income of the minor son of the assessee has to be included in the income of the assessee for the purpose of determining the rate of income-tax applicable to the income of the assessee. Therefore, the contention of Ram is Incorrect and the agricultural income of the minor son Arjun is to be included in the income of Mr. Ram for rate purposes.