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Issues:
Whether the orders of the Commissioner of Agricultural Income-tax, Chepauk, Madras, cancelling the orders of the Agricultural Income-tax Officer, Coonoor, allowing composition under section 65(3) of the Act is sustainable in law. Detailed Analysis: The judgment pertains to two separate cases involving agricultural income tax assessments of two firms, Thuttapullam Estate and Havukal Estate, both consisting of 13 partners. The partners of these firms did not have individual income from agriculture but held a proportionate share of land in the respective firms. The Agricultural Income-tax Officer, Coonoor, permitted the partners to pay tax under section 65(3) of the Tamil Nadu Agricultural Income-tax Act, 1955. However, the Commissioner of Agricultural Income-tax, Chepauk, cancelled these orders and directed the officers to apportion the income among the partners and tax them accordingly under section 17 of the Act. The central issue in both cases was whether the Commissioner's decision to cancel the orders allowing composition under section 65(3) was legally valid. The judgment referenced a Full Bench decision in a similar case, which held that the absence of individual land holdings by partners of a firm does not disqualify them from applying for composition of agricultural income tax under section 65(3) of the Act. Based on this precedent, the court emphatically rejected the Commissioner's actions and set aside their orders, reinstating the original decisions of the Agricultural Income-tax Officer, Coonoor. In conclusion, the court allowed all the tax cases, setting aside the Commissioner's orders and restoring the decisions of the Agricultural Income-tax Officer, Coonoor. No costs were awarded in this matter. Additionally, due to the resolution of the main cases, no further orders were deemed necessary for related miscellaneous petitions.
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