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TMI Blog1973 (7) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... for raising elephant grass was estimated at Rs. 4,047. The assessment for that year along with the assessment for the earlier years was challenged before the Appellate Assistant Commissioner but without success. On a further appeal, the Agricultural Income-tax Appellate Tribunal has upheld the order of assessment in relation to the assessment year in question. Before us, the learned counsel for the assessee contends that the assessment to agricultural income-tax for the assessment year cannot be sustained. He raises substantially three contentions: (1) that the assessee cultivated the elephant grass only in 8.04 acres of land and as this extent falls far below the minimum extent of 12 1/2 standard acres referred to in section 10 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltivated elephant grass in more than 12 1/2 standard acres. Therefore, the assessee has held lands more than the exempted limit referred to in section 10 of the Act during the assessment year. The fact that the assessee chose to cultivate only in a portion of the agricultural lands held by it will not make it any the less assessable under the provisions of the Act. The learned counsel refers to the definition of " land " in section 2(nnn) of the Act and points out that it is only the land which is used for agricultural purposes in the assessment year that can be taken into account for the purpose of section 10. But it is not possible for us to accept this contention, for the definition of " land " as an agricultural land which is used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. But the question here is whether the 8.04 acres of land wherein elephant grass have been cultivated by the assessee can be taken to be land used exclusively for pasture. According to the learned counsel for the assessee, if lands in which fodder crops are raised for feeding cattle, then such lands should be deemed to be lands used for pasture. We are not inclined to accept the submission made by the learned counsel. Normally, pasture land is a land in which grass or other herbage has spontaneously grown and where sheep or cattle are allowed to graze. By any stretch of imagination, we cannot treat the land, in which agricultural operations have been carried on to raise elephant grass as a regular crop, as a pasture land. It is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o law. The mere fact that there is no specific market at Dalmiapuram where the elephant grass has been grown does not mean that the crop has no value at all. It is difficult for us to accept the contention of the learned counsel that the value of the grass can only be taken to be actual expenditure incurred by the assessee in raising the crop. If this is the principle to be adopted in all cases where the crop is not actually sold or offered for sale, then there will be very little scope for the application of the charging provision of the Act, for there will be no income if the value of the crop is taken to be the same as the expenditure incurred in raising the crop. Therefore, the authorities below were justified in valuing the crop and es ..... X X X X Extracts X X X X X X X X Extracts X X X X
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