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Assessment of agricultural income-tax for an individual without maintained accounts. Reckoning of previous years for assessment purposes based on joint family partition and income derivation. Interpretation of the definition of "previous year" under the Agrl. Income Tax Act, 1950. Analysis: The judgment by the High Court of Kerala involved the assessment of agricultural income-tax for an individual, Shri M. K. Parameswaran, who was a member of a joint family that underwent partition. The key issue revolved around the reckoning of previous years for assessment following the partition and income derivation from joint family properties. The assessee did not maintain any accounts, which led to a dispute regarding the applicable previous year for assessment purposes. The Tribunal accepted the assessee's contention that the assessment year should be based on the Malayalam era, considering the joint family's previous assessment practices. However, the High Court analyzed the definition of "previous year" under section 2(o) of the Agrl. Income Tax Act, 1950. The definition allows for two possibilities: either the twelve months ending on March 31 preceding the assessment year or the year ending on the date up to which the assessee's accounts have been made up. Importantly, the second option is only applicable if the assessee has maintained accounts made up in a specific manner. Since the assessee did not maintain any accounts, the High Court ruled that the second part of the definition regarding the option of the year ending on the date of account completion did not apply. Therefore, the previous year should be determined based on the standard twelve months ending on March 31. Consequently, the Court answered the questions referred in the negative, favoring the department and rejecting the assessee's claims. In conclusion, the judgment clarified the interpretation of the "previous year" for agricultural income-tax assessment, emphasizing the requirement of maintaining accounts for the alternative assessment period option. The decision upheld the standard twelve-month period for assessment in the absence of maintained accounts, ruling against the assessee's claim based on the joint family's previous assessment practices.
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