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TMI Blog1966 (3) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ash basis system, was justified in law in reducing the allowable expenditure. In each of these three cases, the agricultural crop concerned was coffee crop and the accounting year was the one ending on March 31, 1958. (The method of accounting employed by the assessees was the cash basis method). As against the order of the Agricultural Income-tax Officer each of the assessees had preferred appeals to the Mysore Sales Tax Appellate Tribunal (hereinafter referred to as the Tribunal). The contentions which had been raised before the Appellate Tribunal were, firstly, that from the total realisations during the accounting year, there should be excluded such of the amounts that had been received on account of the value of the coffee crop for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to towards allowable or admissible expenditure. In the case to which C.R.P. No. 617 of 1965 relates, it found that the admissible expenditure was Rs. 1,17,021.50P. ; in the case to which C.R.P. No. 618 of 1965 relates, it found that the admissible expenditure was Rs. 1,19,167.42P. ; and in the case to which C.R.P. No. 619 of 1965 relates, it found that the admissible expenditure was a sum of Rs. 3,62,712.72P. In each of these cases, the income attributable to the coffee crop of the year ending on March 31, 1958, fell very much short of the admissible expenditure. Therefore, the contention of the assessee in each of these cases was that he had suffered loss in the year ending with March 31, 1958. But the Tribunal, taking the view that it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the reasons which will be presently stated, we are satisfied that there is much force in the contention advanced on behalf of the petitioner. Section 7 of the Act is as follows : " 7. Method of accounting.--Agricultural income shall be computed for the purpose of sections 5 and 6 in accordance with the method of accounting regularly employed by the assessee : Provided that if no method of accounting has been regularly employed by the assessee, or if the method employed is such that, in the opinion of the Agricultural Income-tax Officer, the agricultural income cannot properly be deduced therefrom, then the computation shall be made upon such basis and in such manner as he may determine : Provided further that in the case of coff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting regularly employed by the assessee is the cash basis method. It is also not the case of the tax authorities that the agricultural income cannot properly be deduced from the method of accounting which has been regularly employed by the assessee. In these circumstances, the agricultural income of these assessees should be computed, for the purpose of sections 5 and 6, in accordance with the method of accounting regularly employed by the assessee, and no resort to the proviso can be had by the Agricultural Income-tax Officer. The expenditure found by the Tribunal to be admissible for purposes of deduction falls under section 5(k) of the Act. Section 5 requires that the agricultural income of a person shall be computed after making the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the unauthorised apportionment made by the Tribunal of the admissible expenditure. In doing so, the Tribunal has exceeded its powers under the Act and to that extent its order will have to be set aside. Mr. Government Pleader suggested that these cases may be sent back to the Tribunal for being disposed of afresh. We do not think that there is any necessity to do so. The powers of revision by the High Court, under section 55 of the Act, are wide enough to either reverse, affirm or amend the order against which a revision petition has been preferred. In these three revision petitions, there is no need to send back the case to the Appellate Tribunal. It would be sufficient to set aside that portion of the order of the Appellate Tribunal whic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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