Law:

Section:

- Section 10 - Madras Agricultural Income-tax Act, 1955 JUDGMENT Ramanujam, J. - The matter arises under the Agricultural Income-tax Act, 1955 (hereinafter called "the Act"). The assessee is a company manufacturing cement. A portion of the lands owned by the company was used for raising elephant grass by utilising the sewage surplus water. The grass so grown was used to feed the cattle of the dairy firm maintained by the company. For the assessment year 1966-67 its agricultural income from the land used for raising elephant grass was estimated at Rs. 4,047. The assessment for that year along with the assessment for the earlier years was challenged before the Appellate Assistant Commissioner, but without success. On a further appeal, the Agricultural Income-tax Appellate late Tribunal has upheld the order of assessment in relation to the assessment year in question. 2. Before us, the learned counsel for the assessee contends that the assessment to agricultural income-tax for the assessment year cannot be sustained. He raises substantially three contentions : (1) that the assessee cultivated the elephant grass only in 8 04 acres of land and as this extent falls far below the minimum extent of 12½ standard acres referred to in section 10 of the Act, the assessee is exempt from the provisions of the Act; (2) that the entire 8'04 acres of land used for raising elephant grass has to be treated as pasture land and as such by virtue of the definition of " land " in section 2(nnn) the same has to be excluded in calculating the extent of the holding of the assessee under agricultural operations; and (3) that the estimate of the crop by the authorities for the assessment year in any event cannot be sustained and that the value of the crop can in no circumstance exceed the amount of expenditure incurred in raising the crop. As regards the first contention, it has been found by the Appellate Assistant Commissioner that, apart from the land retained by the assessee for the purpose of mining operations, it had considerable extent of cultivable lands which were much more than 12½ standard acres, and that as a matter of fact for the assessment years 1958-59 to 1961-62 it has…

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