TMI Blog1971 (10) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... ral income-tax authorities. The principle which has been applied in the present case by the High Court is on the same lines and it is unnecessary for us to express any opinion on the question whether in every case the Agricultural Income-tax Officer is bound to accept the computation made by the Central income-tax authorities and only allow additional deductions which may be permissible under the Agricultural Income-tax Act. Appeal dismissed. - - - - - Dated:- 7-10-1971 - Judge(s) : A. N. GROVER., K. S. HEGDE JUDGMENT The judgment of the court was delivered by GROVER J.--These appeals from a common order of the High Court of Madras are by certificate. The assessee who is the respondent, is a limited company carrying on business o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it were income derived from business and 40% of such income shall be deemed to be income, profits and gains liable to tax. It is thus clear that the remaining 60% of the income will be deemed to be agricultural income. For the three assessment years 1956-57, 1957-58 and 1958-59 the Agricultural Income-tax Officer computed the agricultural income in accordance with the assessment made by the Central Income-tax Officer. He took 60% of the income computed by the latter for the purpose of computation of the agricultural income. For the assessment year 1960-61 the Agricultural Income-tax Officer felt that, so far as Chittavurai Estate was concerned, the computation had to be made differently because the area of 36.40 acres was situate in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to him apportionment of expenditure by treating the whole of Chittavurai Estate as one unit had resulted in a loss for the Madras portion and a profit for the Kerala portion. As pointed out by the High Court the computation by the Central Income-tax Officer showed a loss for the entire Chittavurai Estate. It is not necessary to go into details of how the computation was made by the Agricultural Income-tax Officer. The net result, however, was that whereas the Central Income-tax Officer had worked out the loss for the purpose of the Income-tax Act treating the Chittavurai Estate as one unit, the Agricultural Income-tax Officer took the valuation of the produce from the Madras portion as the gross receipt. He deducted from it the expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Indian Income-tax Officer but shall not without the previous sanction of the Assistant Commissioner of Agricultural Income-tax require under section 39, the production of account books already examined by the Indian Income-tax Officer for determining the agricultural income from tea grown and manufactured in the State of Madras or refuse to accept the computation of the Indian Income-tax Officer :.... 8. Computation of income derived from lands situated partly within the State and partly without.--Where an agricultural income is derived from lands situated partly within the State and partly without the State and the income attributable to the lands situated within the State cannot be determined by the assessee but where the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er in the present case. It must be remembered that Chittavurai Estate being of tea falls in a special class. It is only a very small area of that estate which is in Madras even though that is more fertile and gives much more yield than the area in Kerala but the unit has to be assessed as a whole and the High Court, in our opinion, rightly thought that the rule that the Agricultural Income-tax Officer should accept the computation of the Central Income-tax Officer furnishes the only satisfactory basis for computation of agricultural income-tax in respect of Chittavurai Estate. It is noteworthy that even in the first proviso to rule 7 the Agricultural Income-tax Officer has been enjoined to ordinarily accept the computation made by the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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