9911796707
TMI Blog1966 (3) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Tribunal. The common question of law raised in all these three revision petitions is whether, on the facts and circumstances of the case, the Appellate Tribunal having accepted that the accounts of the assessee have been maintained on the cash basis system, was justified in law in reducing the allowable expenditure. In each of these three cases, the agricultural crop concerned was coffee crop and the accounting year was the one ending on March 31, 1958. (The method of accounting employed by the assessees was the cash basis method). As against the order of the Agricultural Income-tax Officer each of the assessees had preferred appeals to the Mysore Sales Tax Appellate Tribunal (hereinafter referred to as the Tribunal). The co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hree revision petitions. The second contention was that deduction should be given to allowable expenditure incurred during the year ending with March 31, 1958. The Tribunal found in each of these three cases that a certain amount had to be given deduction to towards allowable or admissible expenditure. In the case to which C.R.P. No. 617 of 1965 relates, it found that the admissible expenditure was Rs. 1,17,021.50P. ; in the case to which C.R.P. No. 618 of 1965 relates, it found that the admissible expenditure was Rs. 1,19,167.42P. ; and in the case to which C.R.P. No. 619 of 1965 relates, it found that the admissible expenditure was a sum of Rs. 3,62,712.72P. In each of these cases, the income attributable to the coffee crop of the year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r apportion over the subsequent years the expenditure allowable for the accounting year. It is urged that by the distribution or apportionment of the loss, in this unauthorised manner, the petitioner has been deprived of the benefit of section 15 of the Act. For the reasons which will be presently stated, we are satisfied that there is much force in the contention advanced on behalf of the petitioner. Section 7 of the Act is as follows : " 7. Method of accounting.--Agricultural income shall be computed for the purpose of sections 5 and 6 in accordance with the method of accounting regularly employed by the assessee : Provided that if no method of accounting has been regularly employed by the assessee, or if the method employed is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e agricultural income shall be computed, for the purpose of sections 5 and 6, in accordance with the method of accounting regularly employed by the assessee. It is undisputed that in each of these cases, during the relevant year of accounting, the method of accounting regularly employed by the assessee is the cash basis method. It is also not the case of the tax authorities that the agricultural income cannot properly be deduced from the method of accounting which has been regularly employed by the assessee. In these circumstances, the agricultural income of these assessees should be computed, for the purpose of sections 5 and 6, in accordance with the method of accounting regularly employed by the assessee, and no resort to the proviso c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 15 of the Act, the assessee sustaining a loss in agricultural income in any year is allowed to carry forward that loss and set it off against the agricultural income for the following years. This benefit given under the Act, to the assessee, will be impaired by the unauthorised apportionment made by the Tribunal of the admissible expenditure. In doing so, the Tribunal has exceeded its powers under the Act and to that extent its order will have to be set aside. Mr. Government Pleader suggested that these cases may be sent back to the Tribunal for being disposed of afresh. We do not think that there is any necessity to do so. The powers of revision by the High Court, under section 55 of the Act, are wide enough to either reverse, affir ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
