STATE OF ORISSA versus SHYAM SUNDAR PATNAIK

Citation: [1966] 2 S.C.R. 402 · Decided: 27-10-1965 · Supreme Court of India · Bench: K. SUBBA RAO · Disposal: Dismissed

Judgment (excerpt)

STATE OF ORISSA 
V. 
SHYAM SUNDAR PATNAIK 
October 27, 1965 
[K. SUBBA RAo, J. C. SHAH AND S. M. SIKRI, JJ.] 
Orissa Agricultural Income-tax Act, 1941-Family consisting of sons 
of two deceased brothers whether Joint 
Hindu family 
for the purpose 
of Cl. B of the Schedule to the Act-Income from milk derived from 
cows and buffaloes maintained on agricu/lural lands whether agricultural 
income. 
The respondent represented a joint Hindu family consisting of himself, 
Ibis brother, and two sons of his father's brother. The joint family owned 
agricultural land, cows and buffaloes. 
Under s. 10 of the Orissa Agri-
cultural Income Tax Act, 1947, the income of joint Hindu family was 
normally assessable as the income of one individual; but certain conces-
·•ions were given in cl. B. of the Schedule of the Act to a aoint family 
consisting of brothers only. The Explanation to the Schedule stated that 
for the purpose of the Schedule 'brother' included the son and the son 
of a son of a brother, and the widow of a brother. For the assessment 
years 1950-51, 1951-52 and 1952-53 the assessing authorities under the 
Act did not allow to the 
family the benefit given 'by cl. .B of 
the 
Schedule and refused to treat the income from ttnilk derived from cows 
A 
B 
c 
D 
and buffaloes maintained by the assessee family as agricultural income. 
The order of asse<Sment was confiFmed by the Assistant Collector but the 
Agricultural Income-tax Tribunal gav~ the benefit of the rates in. the 
E 
Schedule to the family and Vreated the lincome from milk as agricultural · 
income. 
Jn a reference the High Court confirmed the view• of the Tri-
bunal. The State of Orissa appealed to this Court against the High 
Court's order by special leave. 
It was urged on behalf of the State that (1) a family consisting of 
the sons of two brothers both of whom were dead was not a family con-
sisting of "brothers only" under cl. B to the 'Schedule, (2) the income 
from the milk in question was not agricultural income. 
HELD : If by the Explanation clause the expression "brother" has 
been given an artificial meaning as inclusive. of the son and the son of a 
'Son of a brother, it would be difficult to regard the family as not consist-
ing of brothers only. 
For the purpose of interpreting cl. B Explana-
tion (i) must be incorporated in the expression '
1consisting of brothers 
only" and by so doing the conclusion is inevitabl-~ that an undivided family 
consisting of sons of deceased brothers, for the purpose of taxation under 
the Orissa Agricultural Income-tax Act, would be regarded as one con-
sisting of "brothers only". [405 E-F] 
The question whether income from milk derived from milch cows 
maintained by the respondent's family was agricultural income was held 
to be concluded by lthe court's decision in Con1missioner of Income-tax, 
West Bengal, Calcutta v. Raja Benoy Kumar Sahas Roy, [1958] S.C.R. 101. 
[404 CJ 
C1v1r. APPELLATE JURISDICTION : Civil Appeals Nos. 382 to 
384 of 1964. 
F 
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OR!SSA V. S. S. PATNA!K (Shah, J.) 
403 
A 
Appeals by special leave from the judgment and order dated 
August 20, 1962 of the Orissa High Court in S.J.Cs. Nos. 16, 17 
and 18 of 1961. 
S. V. Gupte, Solicitor-General and R. N. Sachthey, for the 
appellant. 
B 
The respondent did not appear. 
The Judgment of the Court was delivered by 
Shah, J. 
These three appeals relate to proceedings for asses>-
ment of agricultural income-taJC under the Orissa Agricultural 
Income-tax Act, 1947, for the years 1950-51, 1951-52 and 
C 
1952-53, and raise common questions. 
D 
The respondent represents a joint Hindu family consisting of 
four members, relationship between whom is explained by the 
following table : 
Biswamber Jatnaik 
I 
Binod 
Behari 
I 
Puran-
Chandra 
Jadimani Patnaik 
I 
I 
Shy am 
Sunder 
Bhagaban Jatnaik 
Laxmi-
dhar 
E 
Before the relevant years of account Jadimani, Biswambar 
and Bhagaban had died and Binod Behari, Puran Chandra. 
Shyam Sundar and Laxmidhar were the surviving members of the 
family. 
The joint family owned agricultural lands, cows and 
buffaloes. 
The assessing officer determined the income of the 
respondent for 1950-51 at Rs. 11,949, for 1951-52 at Rs. 10,850 
F 
and for 1953-54 at Rs. 9,549. 
In these sums were included in 
each year Rs. 200 as income derived by sale of milk of cows and 
buffaloes maintained by the family. 
The order of assessment 
was confirmed by the Assistant Collector of Agricu

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