9911796707
TMI Blog1984 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ,782.00 1976-77 1,00,370.00 1977-78 60,900.00 1978-79 48,465.00 The assessee claimed before the Agricultural Income-tax Officer that the sale proceeds of albezia trees was a capital receipt and, therefore, it is not exigible to tax relying upon the decision in State of Kerala v. Karimtharuvi Tea Estate Ltd. [1966] 60 ITR 275 (SC). But the Agricultural Income-tax Officer brought the amount to tax treating it as a revenue receipt. The assessee took the matter in appeal to the Appellate Assistant Commissioner who confirmed the order of the Agricultural Income-tax Officer. Then the matter was taken to the Agricultural Income-tax Appellate Tribunal and it has also held that the sale proceeds of albezia trees raised in the estate was a revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Revenue on the other hand relies on the decision of this court in Nellayappan Sastha & Brothers v. Commr. of Agrl. LT [1979] 117 ITR 696, in support of its plea that the albezia trees had been planted with view to derive income by regularly cutting and selling them for making catamarans and not solely for the purpose of providing shade for the tea plants and so the income by the sale of those trees should be treated only as a revenue receipt and not as a capital receipt and,. as such, it can be brought to tax under the Agricultural Income-tax Act. In the decision of the Supreme Court in State of Kerala v. Karimtharuvi Tea Estate Ltd. [1966] 60 ITR 275, the assessee company carried on the business of manufacturing and selling tea. Only f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Agrl. I T [1979] 117 ITR 696, this court has taken the view that where the trees are planted not only for the purpose of giving shade to the tea plants but also to derive a regular income by raising the trees and thereafter cutting and selling, them for making catamarans, the proceeds of sales of such trees should be treated only as a revenue receipt and not as a capital receipt. On the facts of this case, the Tribunal after a personal inspection of the local area and after finding out the nature and condition of the trees, has held that the intention of the assessee is not exclusively to provide shade for the tea bushes but the intention is also to raise the trees and thereafter to cut and sell the same for making catamarans which woul ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
