The assessing authority brought the amount to tax.
The Kerala Agricultural Income tax Act, 1950 provides for the levy of tax on agricultural income in the State of Kerala.
The case was ultimately carried in second appeal to the Tribunal on the question whether the sum of Rs.33,747.09 credited in the relevant previous year companyld be assessed to tax for the year 1964 65.
CIVIL APPELLATE JURISDICTION Civil Appeal No.1396 of 1974 From the Judgment and order dated 28.2.1973 of the Kerala High Court in I.T. Reference No.
S. Krishnamurthy Iyer, V.J. Francis and N.M. Popli for the Appellant.
During the accounting period relating to the assessment year 1964 65 M s. Associated Planters Ltd.waived payment of the interest of Rs.33,747.09, and accordingly the amount was credited to the revenue accounts of the assessees.
Balakrishnan for the Respondent.
The Judgment of the Court was delivered by PATHAK J. This appeal by special leave is directed against the judgment of the High Court of Kerala disposing of an Agricultural Income tax Reference and answering the following question in favour of the assessee and against the Revenue Whether on the facts and circumstances of the case the Tribunal was justified in holding that the amount of Rs.33,747.09 is number agricultural income for the assessment year 1964 65.
In assessment proceedings for the year 1963 64, the assessees claimed a deduction of Rs.33,747.09 from their agricultural income on the ground that it was payable towards interest on a loan of Rs.4,00,000 taken by them from M s. Associated Planters Ltd., Calicut.
The assessees Kerala Estate Mooriad Chalapuram, is a broad description of seven persons possessing the status of tenants in common under the Kerala Agricultural Income tax Act, 1950.
84 of 1971.
They owned an estate from which they derived agricultural income liable to be assessed in the year 1963 The assessees followed the mercantile system of accounting.
