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TMI Blog1971 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... lantations. Out of this and are a of 1006.60 acres is situate in Kerala and the remaining 36.40 acres in Tamil Nadu. According to the assessee Chittavurai Estate is working as one unit. There is only one factory manufacturing tea grown in the Madras and Kerala portions of the estate. The expenses are incurred for the maintenance of the whole estate as one unit and common accounts are maintained for it, there being no separate account for the Madras portion. Section 2(1) of the Indian Income-tax Act, 1922 (hereinafter called the " Income-tax Act "), defines " agricultural income ". The same definition is to be found in section 2 of the Madras Agricultural Income-tax Act, 1955, hereinafter referred to as " Agricultural Income-tax Act ". Und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d his order. The Tribunal, however, set aside the assessment. It remanded the case to the Assistant Commissioner for certain matters. The department further sought to reassess the assessee for the earlier three years also and issued a notice under section 35 of the Agricultural Income-tax-Act. Thereupon, the assessee filed writ petitions in the High Court challenging the order for reopening the assessment for the assessment years 1956-57 to 1958-59. A tax revision was also filed against the order of the Agricultural Income-tax Appellate Tribunal in respect of the assessment for the year 1960-61. The writ petitions and the revision were allowed by the High Court. The order reopening the assessments was quashed and as regards assessment for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Act and rules 7 and 8 framed under that Act. Section 6 provides that where agricultural income is derived from land situated partly within the State and partly without the State, agricultural income-tax shall be levied: " (i) where the portion of such income attributable to the land situated within the State can be determined from the accounts maintained by the assessee, on the portion so determined; (ii) where the portion of the income so attributable cannot be determined by the method specified in clause (i), on such portion as may determined in the prescribed manner." Rules 7 and 8 are as follows: 7. Computation of income from tea.--In respect of agricultural income from tea grown and manufactured by the seller in the Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses such income shall be computed in proportion to the respective cultivated acreage of the crop lying within and without the State if the crop grown is the same, subject to such modifications as may be necessary with reference to the yield per acre, the quality of the produce and the price fetched within and without the State." The High Court rightly pointed out that rule 7 is applicable only to agricultural income from tea grown and manufactured in the State of Madras. It can have no applicability in the present case where even though tea is grown inside that State but it is manufactured in Kerala which is outside that State. As regards rule 8 it is a moot point whether the same would be applicable to tea. So far as tea is concerned the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputation. That court, therefore, declined to give a finding on the question whether the Central Incometax Officer's computation should be hold to be legally binding in all cases and in all circustances on the Agricultural Income-tax Officer. Our attention has been invited on behalf of the assessee to a decision of this court in Anglo-American Direct Tea Trading Co. Ltd. v. Commissioner of Agricultural Income-tax. In that case it was held that agricultural income taxable under the Kerala Agricultural Income-tax Act, 1950, was 60% of the income computed under the Income-tax Act after deducting therefrom the allow. ances authorised by section 5 of the Kerala Act insofar as the same had not been allowed in the assessment under the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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