During the assessment proceedings before the Income Tax Officer, the appellant claimed the said amounts as capital receipts.
So too, the firm received 10,336 in the accounting year companyresponding to the assessment year 1955 56.
The fund was number companylected from the producers like the assessees, for they were neither producers in Penang number exporters in Federation estates from whom, under the Ordinance, the cess was companylected and pooled.
It held that the source of the amounts was the production or the export of the rubber itself by the owners of the plantations and as the amount was paid back to the producers it was only a trading receipt.
In the accounting year relevant to the assessment year 1955 56, Meenakshi Achi received 5,962 as re plantation cess from the said board.
Whether, on the facts and in the circumstances of the case, the re plantation cess receipt of 5,962 dollars is income assessable to tax ?
The argument of Mr. K. Srinivasan, the learned companynsel for the appellant, may be briefly stated The premise accepted by the High Court was wrong.
The Income Tax Officer treated them as revenue receipts on the ground that the said payments were made to companyer the re planting expenses of the assessees.
Hence the present appeals.
V.R.K.R.S. Firm, the appellant in C.A. No.
At the instance of the firm, the following question was referred to the High Court Whether on the facts and in the circumstances of the case, the sum of 10,336 dollars companystitutes income assessable to tax ?
The income of the assessees from the said plantations was brought to tax in India as a foreign income though it was derived from agriculture.
They were only planters and were number running any business.
158/1965, owns rubber estates in Kaualakangsar, Malaya.
157/1965, Meenakshi Achi, owns 5/6th share in Sungei Chour Estate in Malaya.
The appellant in C.A. No.
During the Second World War, rubber estates in the Federated Malay States were either destroyed or denuded.
In order to encourage planting or re planting of rubber trees, the Government of the Federated Malay states issued an Ordinance styled, The Rubber Industry Re planting Fund Ordinance, 1952, whereunder a Board was companystituted to administer the funds accumulated in terms of the Said Ordinance.
