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Issues:
Whether gifts in documents 210 and 211 of 1972 are independent and unconnected, falling within section 9(2) of the Agricultural Income-tax Act, 1950. Analysis: The judgment pertains to the assessment years 1973-74, 1974-75, and 1975-76 under the Agricultural Income-tax Act, 1950. The Deputy Commissioner initiated suo motu revision under section 34 of the Act based on documents 210 and 211 of 1972, which involved transfers benefiting the wife and minor children of the assessee. The transfers were viewed as a means to circumvent section 9(2) of the Act, leading to the exercise of powers under section 34. The Deputy Commissioner relied on a Full Bench decision to justify the revision, citing grounds of illegality, irregularity, or impropriety in the initial assessment orders. The court highlighted that the transfers were not considered by the Agricultural Income-tax Officer during the initial assessment, justifying the exercise of powers under section 34. The judgment emphasized that the court's role is limited to answering the specific question referred and cannot delve into matters beyond that scope. The court affirmed the Deputy Commissioner's conclusion that the transfers were an indirect method to bypass statutory provisions, warranting the application of section 34. Ultimately, the court upheld the Deputy Commissioner's decision, ruling in favor of the Revenue and against the assessee. The judgment directed the Deputy Commissioner to take necessary actions based on the court's findings. The decision was based on the clear evidence that the transfers were structured to benefit specific parties and avoid the provisions of section 9(2) of the Agricultural Income-tax Act, 1950. The judgment underscores the importance of adhering to statutory provisions and preventing attempts to circumvent tax laws through indirect means.
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