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Issues:
Assessment of agricultural income tax based on yield estimation for cardamom estate, objection to assessment, lack of inspection, revision by respondent No. 2, challenge to assessment orders as arbitrary and illegal, consideration of guidelines issued by the Board of Revenue, fairness of estimate, quashing of revision order, direction for further assessment in accordance with law, compliance with court order for tax collection. Detailed Analysis: The judgment concerns the assessment of agricultural income tax for a petitioner with a cardamom estate, primarily based on yield estimation. The petitioner objected to the assessment, citing a reduced yield due to disease and poor crop quality, specifically questioning the estimate for plants of certain ages. Notably, there was no inspection of the petitioner's property by the assessing officer, who based the estimate on inquiries in the locality and other estates. The petitioner challenged the assessment in a revision before respondent No. 2, arguing that the estimate lacked a scientific basis, inspection was not conducted, and expenses were unreasonably low. Respondent No. 2 upheld the yield estimate but allowed a nominal increase in cultivation expenses, leading to the petitioner contesting the orders as arbitrary and illegal. The petitioner's counsel contended that the estimate was arbitrary and not based on proper assessment criteria, urging that the assessing officer and respondent No. 2 did not consider relevant factors, including guidelines issued by the Board of Revenue. The court acknowledged the importance of the guidelines, emphasizing that while not conclusive, they are relevant for estimating yield. Critically, the court found that the assessment did not align with the guidelines, lacking proper justification for deviating from them. The court deemed the estimate arbitrary and unsustainable, ultimately quashing the revision order and directing a reassessment in line with the law, emphasizing the need for proper substantiation if deviating from the guidelines. Furthermore, the court addressed the issue of tax collection pending the revision process, directing that if the petitioner had complied with a previous court order, tax collection should cease until the revision is finalized. The court allowed the original petition to the specified extent, without imposing any costs. Overall, the judgment highlights the importance of conducting assessments based on relevant guidelines, ensuring a scientific and fair estimation process, and providing proper justifications for any deviations from established norms.
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