Law: Income Tax Act, 1922

Section: 2

- Section 2 - Indian Income-tax Act, 1922 JUDGMENT Srinivasan, J.-These are revisions by the Commissioner of Agricultural Income-tax. The assessee, the Davershola Tea Co. Ltd., leased out a plantation to the Madras Tea Estates Ltd. There were two separate leases, one covering the actual plantation and the other, the buildings, machinery, furniture, etc. For the two assessment years 1955-56, and 1956-57, the rental by way of lease of the plantation itself was Rs. 24,000. In respect of the buildings, machinery, furniture, etc., the rental stipulated in the lease was Rs. 89,999 for the first year and Rs. 95,000 for the second year. The Agricultural Income-tax Officer estimated the rental value of the buildings alone at Rs. 59,749 and Rs. 65,471 for the two years respectively. After making certain allowances, the net agricultural income in relation to the buildings alone was taken as Rs. 16,033 for the first year and Rs. 19,722 for the second year. Sixty per cent. of these amounts was brought to tax. These assessments were taken up in appeal to the Assistant Commissioner who confirmed the finding of the Agricultural Income-tax Officer. 2. In the further appeal to the Appellate Tribunal, it was contended that no part of the income covered by the second of the leases, that is, the lease in respect of the buildings, machinery and furniture, could be regarded as agricultural income. The Tribunal accepted the contention of the assessee. It purported to interpret section 2(a)(3) of the Agricultural Income-tax Act and reached the conclusion that the owner of the buildings could be subject to tax only when he occupied the buildings in question and that he would not come within the scope of the above provisions as, in the present case, he did not occupy the buildings. The Tribunal observed : "The cultivator is the occupier, but this is not the assessment of the agricultural income of the cultivator." 3. The present revision petitions are directed against the finding of the Tribunal. 4. It seems to us that the conclusion reached by the Tribunal is wholly erroneous. There seems to be a confusion in the mind of the Tribunal between the charging section and the definition…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492