and utilised the same for tea business.
The Appellate Assistant Commissioner accepted that companytention and directed the Income tax Officer to modify the assessment accordingly.
Thereafter at the instance of the Revenue the following question was referred to the High Court for its opinion Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the 1 1962 XLIV 1.
T. R. 601.
decision of the Supreme Court in Dooars Tea Co. Ltd. 1962 44 I.T.R. 6, was applicable to the companyputation of the assessees total income under the provisions of the Indian Income tax Act, 1922 and in directing the Income tax Officer to make a fresh assessment according to law in the light of the aforesaid decision of the Supreme Court.
At the time of the assessees assessment under the Bengal, Agricultural Income tax Act the assessee companytended that only the companyt of growing the produce in question should be taken into companysideration and number its market value as the same was used for the purpose of assessees tea business.
Appeal by special leave from the judgment and order dated February 26, 1969 of the Calcutta High Court in Income tax Reference No.
In appeal by the Revenue the finding, of the Appellate Assistant Commissioner was accepted by the Tribunal.
79 of 1970.
It is true that, the question formulated by the Tribunal does number accurately bring out the real companytention between the parties.
Before the Appellate Assistant Commissioner, the assessee raised the companytention that the market value of agricultural produce grown in the tea estate and utilised by the assessee in the tea business, which had been assessed at 100 per cent to agricultural income tax, must be taken into companysideration in the companyputation of allowable expenditure.
For the assessment year 1961 62, the assessee companypany was assessed to Income tax under Rule 34 of the Income tax Rules, on its pronts as per its Pront and Loss Account with certain modifications, by the Income tax Officer.
It relates to the assessment of the assessee for the assessment year 1961 62, for which the relevant previous year was the calendar year 1960.
The assessee is a Tea Company.
In the expenses debited in Its accounts, only the expenses for raising thatch, bomboo, fuel etc.
Hence this appeal by the Revenue.
S. Desai, T. A. Ramachandran and D. N. Gupta, for the respondent.
D. Karkhanis and S. P. Nayar, for the appellant.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
On and from the assessment year 1951 52 the agricultural income tax authorities started taking the market value of thatch, bamboo and fuel etc.
Cl/73 The Judgment of the Court was delivered by HEGDE, J. This is an appeal by special leave.
Upto the assessment year 1950 51 the Agricultural Income tax Officer was accepting the companyputation of the, total income from the growth, manufacture and sale of tea made by the Income Tax Officer and taking 60 per cent of the income determined as the agricultural income under Rule 24 of the Income tax Rules.
In support of that companytention reliance was placed on the, decision of this Court in the case of Dooars Tea Co. Ltd. v. Commissioner of Agricultural Income tax, West Bengal 1 .
37 of 1965.
grown in the tea estate and used in the tea business were included.
So, from that assessment year the companyputation of the total income from tea by the Income tax authorities was varied by the Agricultural Income Tax Officer and the assessee had to pay on a total income which was more than the income disclosed in the Profit and Loss Account.
9 L797Sup.
grown in the tea estate and used in the tea business as 100 per cent agricultural income and after deducting the companyt of cultivation thereof, taxed the whole of the resulting income on the basis of the market value of those articles.
This companytention was rejected by the Revenue and this Court upheld the decision of the Revenue.
