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TMI Blog1987 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... u, and that there is no provision in the Tamil Nadu Agricultural Income-tax Act enabling the Agricultural Income-tax Officer to grant exemption in the case of the assessees who are enjoying exemption under the Income-tax Act. It is this aspect which is agitated in this revision because the rejection of the contention that had been put forward on behalf of the petitioner before the Tribunal that the Mutt has been exempted by the Central Government from the assessment year 1972-73 from levy of income-tax under section 10(23C)(v) of the Income-tax Act and that the Mutt must be deemed to have been exempted under the Tamil Nadu Agricultural Income-tax Act also, was rejected by the Tribunal. A notice was issued under section 16(2) of the Tamil Nadu Agricultural Income-tax Act to the petitioner herein, and for that, the petitioner herein furnished a blank return dated " Nil " and enclosed a statement showing the details of income and expenditure for the accounting year ended June 30, 1975. After perusal of the accounts and records, the Agricultural Income-tax Officer, Kumbakonam, determined the net agricultural income of the, trust at Rs. 23,047 for the year 1976-77. The appeal to the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent of 9,96 acres. The Tribunal has also observed in the order under revision that before the Assistant Commissioner, the petitioner herein has claimed that the expenses incurred to the extent of Rs. 15,941,94 for agricultural operations in the plantations in " Sirumalai " estate, which was under " pannai cultivation should be allowed. The Appellate Assistant Commissioner has rejected the claim on the ground that the petitioner herein has not produced proper accounts or vouchers. The Tribunal also found that the petitioner herein has not claimed that the lands in " Sirumalai " estate were under If pannai cultivation ". In the statement given by Sri Karyam and Agent of the petitioner-Mutt, it is not stated that " Sirumalai " estate was under " pannai cultivation " and the said point was raised before the Assistant Commissioner for the first time. In the said statement, it was claimed on behalf of the petitioner herein that a sum of Rs. 17,812,94 was incurred under the head, and out of the said gum of Rs. 17,812.94, the Agricultural Income-tax Officer has allowed only a sum of Rs. 7,894. The petitioner herein has not produced the vouchers before the Appellate Assistant Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year(s) 1972-73. " and the above passage was reported. Learned counsel for the petitioner herein also relies on the decision in S. K. Muthukumaraswami Thambiran v. Agrl. ITO [1978] 113 ITR 889 (Mad), for the scope and ambit of section 4(b) of the Tamil Nadu Agricultural Income-tax Act, 1955, and refers to the following observation of Mohan J., which occurs at pages 891 and 892: " Mr. K. Venkataswami, learned Additional Government Pleader in meeting this submission states that my judgment in W.P. Nos. 422 and 423 of 1975. (Rajam Chettiar Annadhana, etc., Charities v. Agricultural Income-tax Officer) requires reconsideration, since when the amending Act introduced section 4(b), it was with the avowed object of subjecting agricultural income derived by a charitable and religious trust to tax, and all the more so, when the very purpose of the Act, namely, the Tamil Nadu Agricultural Income-tax Act, is to levy tax on agricultural income. Therefore, if section 10 of the Indian Income-tax Act alone got incorporated, the agricultural income held by a religious or a charitable trust would be exempt. That would frustrate the very amendment. Consequently, what have to be looked into are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion but also it does not even appear to be a good construction. As to why I held so will be evident from the following. Section 4 defines the scope of total agricultural income. Originally, all agricultural income derived from land situated within the State, which is received by the assessee or which accrued to him within or without the State, was assessable. But that income did not include, in view of clause (b) as it stood then, any agricultural income derived from property held under trust or other legal obligation wholly for religious or charitable purpose, and in the case of property so held in part only for such purpose, the income applied thereto. This exemption is withdrawn by amending section 4(b).That amendment reads: 'any agricultural income derived from property held under trust, wholly or partly for charitable or religious purposes to the same extent to which income derived from property held under trust wholly or partly for charitable or religious purpose, is not included in the total income for purposes of the Income-tax Act, 1961 (Central Act 43 of 1961).' What does 'the income derived from the property held under trust wholly or partly for charitable or religiou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied to such purposes in India ; and, where any such income is accumulated or act apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is not in excess of twenty-five per cent of the income from such property. " According to learned counsel for the petitioner, a combined reading of section 4(b) of the Tamil Nadu Agricultural Income-tax Act, 1955 (Tamil Nadu Act V of 1955), and section 10(23C)(v) and section 1l(1)(a) of the Income-tax Act, 1961 (Act No. XLIII of 1961) will clearly show that any agricultural income derived from property held under trust, wholly or partly for charitable or religious purposes, to the same extent to which income derived from property held under trust wholly or partly for charitable or religious purposes, is not included in the total income for purposes of the Income-tax Act, 1961 (Central Act XLIII of 1961), is exempt, and the agricultural income so derived by the trust cannot be taxed. Learned counsel for the petitioner further submits that there is no question of any statutory exemption being obtained by the petitioner herein under the Tamil Nadu Agricultural Income-tax Act from the Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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