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Issues:
Assessment based on best judgment, Dispute regarding slaughter tapping agreement, Rejection of expenses, Revision petition under section 78 of the Kerala Agricultural Income-tax Act, 1991. Assessment based on best judgment: The petitioner filed a return showing a net agricultural income of Rs. 15,000 for the assessment year 1988-89. However, the assessing authority proposed to complete the assessment by estimating the yield and income as no accounts were produced in support of the return. The assessment was done based on best judgment assessment, considering the entire trees under second year of slaughter tapping, resulting in a net income of Rs. 1,77,125. The Assessing Officer relied on an inspection report revealing that the estate was under slaughter tapping from April 1985, and employees were working in the estate for slaughter tapping. The authority rejected certain expenses for lack of proof with accounts, vouchers, or receipts. Dispute regarding slaughter tapping agreement: The petitioner contested the assessment before the Commissioner of Agricultural Income-tax, Trivandrum, claiming that there was a slaughter tapping agreement with different individuals from April 1985 onwards, which would impact the yield and income calculations. The petitioner argued that the estate had been cut and removed for replantation in 1988, making it unlikely to yield as estimated. However, the Commissioner found no evidence to substantiate this claim and relied on the inspection report and other factors to reject the contention of a slaughter tapping agreement. Rejection of expenses: The assessing authority rejected certain expenses claimed by the petitioner, such as police protection, legal expenses, and road maintenance, due to lack of evidence with supporting documents. This decision was upheld during the revision process, emphasizing the importance of providing proper documentation for expenses claimed. Revision petition under section 78 of the Kerala Agricultural Income-tax Act, 1991: The petition was filed as a second revision under section 78 of the Act challenging the assessment based on best judgment. The court noted that the question of whether there was a slaughter tapping agreement was a factual matter already settled by the authorities below. The court found no grounds to overturn the decisions made by the lower authorities and dismissed the petition. In conclusion, the court upheld the assessment based on best judgment, rejected the claim of a slaughter tapping agreement due to lack of evidence, and emphasized the importance of providing proper documentation for claimed expenses. The petition was dismissed, affirming the decisions made by the assessing authority and the Commissioner of Agricultural Income-tax.
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