TMI Blog1977 (11) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessed under the Tamil Nadu Agricultural Income-tax Act (hereinafter referred to as "the Act") for an extent of 124.50 acres equivalent to 72.37 standard acres up to the assessment years 1972-73, on a composition basis. The petitioner had settled an extent of 50.46 ordinary acres in the name of a private trust called Nagakulam Bungalow Krishna Pooja Trust on May 14, 1955. Since the Agricultural Income-tax Officer was of the view that this trust cannot be a public or religious or charitable trust and as it would attract section 4(b) of the Act, the extent was clubbed in the holdings of the petitioner from 1973-74 for the purpose of assessment. The petitioner filed a revision petition before the Commissioner of Agricultural Income-tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avowed object of subjecting agricultural income derived by a charitable and religious trust to tax. 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 sections 11, 12 and 13 of the Income-tax Act, 1961. Having regard to the language of section 4(b) of the Act, namely, "to the same extent to which income derived from property held under trust wholly or partly for charitable or religious purposes", it should h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Act 4 of 1973. It was this exemption which was sought to be withdrawn so that, that income also would become liable for taxation. Could it be said, under those circumstances, that the Tamil Nadu legislature looked at section 10(1) alone and wanted to incorporate that provision of the Income-tax Act ? If that be so, how could this purpose be achieved ? Of course, it may be possible to contend that, however well intentioned it might have been, it was not carried out in effecting the amendment. In fact, that is the contention urged on behalf of the petitioner. I am unable to accept this contention since it would lead to not only frustrate the object of the section but it does not even appear to be a good construction. As to why I held so wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sections of the Income-tax Act that are sought to be incorporated ? It is where sections 11, 12 and 13 of the Income-tax Act require to be looked at. These sections occur under Chapter III which deals with incomes which do not form part of the total income. Section 11 deals with income from property held for charitable or religious purposes. Obviously, therefore, it is this section to which reference by incorporation will have to be made, since the well-accepted principle of law is, special excludes the general (generalibus specialia derogant). Section 12 deals with income of trusts or institutions from contributions. Section 13 lays down the conditions for exemption. Having exempted the agricultural income derived by a charitable or reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the light of the observations made above after affording the petitioner an opportunity to make representations either in person or through counsel. W. P. No. 2960 of 1975: The matter will stand remitted to consider the question whether the private income of the petitioner could be clubbed with that of the trust and assessment made. Therefore, the impugned assessments are hereby set aside and the assessing authority will proceed to issue fresh notices and assess or continue the composition in the light of the observations made above, after affording an opportunity to the petitioner to put forth his representations either in person or through counsel. W. Ps. Nos. 3864 to 3869 of 1975 Applying my judgment in W.P. No. 2960 of 1975, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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