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TMI Blog1971 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... questions of law under section 60(1) of the Agricultural Income-tax Act, 1950: " (1) Having regard to the fact that the Appellate Assistant Commissioner of Agricultural Income-tax and Sales Tax, Kozhikode, has upheld the estimate of income independently of the system of accounting followed by the assessee, whether, on the facts and in the circumstances of the case, the Tribunal has been correct in finding that the Appellate Assistant Commissioner went wrong in holding that it was not open to the Agricultural Income-tax Officer to include the value of the 1,484 lbs. of pepper alleged to have been carried over to the subsequent year in the assessable income for the year in question ? (2) Whether, on the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice the decision of the Supreme Court in Rajalinga Raja v. State of Madras, which was a case arising under the Madras Agricultural Income-tax Act, 1955. The question that directly arose in that case was as to whether the agricultural produce itself is income and becomes charged to tax under the Madras Agricultural Income-tax Act, 1955, when he has received the produce and not when he has sold, used or consumed it. Shah J. (as he then was), speaking for the court, said : " The expression 'income' in its normal connotation does not mean mere production or receipt of a commodity which may be converted into money. Income arises when the commodity is disposed of by sale, consumption or use in the manufacture or other processes carried on by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the decision of the Supreme Court in Commissioner of Income-tax v. A. Krishnaswami Madaliar, applies to the facts of this case in all respects is not correct in the light of our above observations. That decision deals with the question as to the assessability of income in the case of a person following the cash system of accounting. In this case, as we have already held, no income has been derived by the assessee during the previous year relevant to the assessment year and, therefore, no question of assessability of income in a particular year arises. The produce received by the assessee would become income only when it is sold, consumed or used for the purpose of business. Therefore, the ratio of the decision in Commissioner of Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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