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Issues:
1. Interpretation of section 9(2)(iv) of the Agricultural Income-tax Act, 1950 regarding the purchase of property in the name of a minor child. 2. Determining the validity of relying on a registered sale deed over a certificate for loan payment in a tax assessment case. Analysis: The judgment by the High Court of Kerala, delivered by Judge V. V. Kamat, along with Judge G. Sivarajan, addressed the application of section 9(2)(iv) of the Agricultural Income-tax Act, 1950. The case involved the purchase of a property named Kavitha Estate by an assessee in the name of his minor daughter. The assessing authority concluded that the consideration for the purchase came from the assessee himself, as neither the minor daughter nor her mother had independent income to make the purchase or repay the loan. The appellate authority further strengthened this position by noting that the assessee was also a partner in the firm that provided the loan for the purchase. The Tribunal confirmed that the property was indeed purchased by the assessee for his minor child, and the consideration came solely from the assessee, dismissing the weight of a certificate over the registered sale deed. The court emphasized the clear language of section 9(2) of the Act, which requires assets transferred to a minor child without adequate consideration to be included in the assessment of agricultural income. Referring to previous judgments, including P. M. Paily Pillai v. State of Kerala and CIT v. Prem Bhai Parekh, the court highlighted the importance of consistent findings in cases involving the transfer of assets to minor children. Despite arguments regarding the phrase "directly or indirectly" in the statutory provision, the court upheld the consistent findings that supported the application of section 9(2) in this case. Ultimately, the court answered both questions in favor of the Revenue and against the assessee, emphasizing the direct connection established by the consistent findings in applying section 9(2) of the Agricultural Income-tax Act, 1950. The judgment concluded by directing the dissemination of the judgment to the Agricultural Income-tax Appellate Tribunal in Trivandrum.
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