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TMI Blog1964 (3) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... ave to be answered against the department and in favour of the assessee. We do so. 2. The third and the last question in I.T.R. Nos. 42 and 43 and the only question in I.T.R. No. 44 is worded as follows: Whether the Agricultural Income Tax Officer is to follow the computation of income from tea made by the Central Income Tax Officer or whether he can find out the income from tea plantations applying the provisions of the Indian Income Tax Act and make the assessment exercising his powers under the Agricultural Income Tax Act. 3. The power of the State to legislate in respect of agricultural income is derived from entry 46 - Taxes on agricultural income - of the State List (List II) in the Seventh Schedule to the Constitution. Article 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the building is on or in the immediate vicinity of land, nd is a building which the receiver of the rent or revenue or the cultivator or the receiver of the rent-in-kind by reason of his connection with the land, requires as a dwelling-house, or as a store-house, or other out-building. 4. This definition can be altered, but only as provided in article 274(1) of the Constitution. Under that clause no bill or amendment which varies the meaning of the expression "agricultural income" as defined for the purposes of the enactments relating to Indian Income Tax shall be introduced or moved in either House of Parliament except on the recommendation of the President. 5. The power of the Union to impose taxes on income is confine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd for the ascertainment and determination of any class of income. Such rules may be made for the whole of the taxable territories or for such part thereof as may be specified and sub-section (2): Without prejudice to the generality of the foregoing power, such rules may - (a) prescribe the manner in which, and the procedure by which, the income, profits and gains shall be arrived at in the case of - (i) income derived in part from agriculture and in part from business. 9. Sub-section (5) is to the effect that the rules made under the section shall be published in the Official Gazette, and shall thereupon have effect as if enacted in the Act. 10. In Karimtharuvi Tea Estate Ltd. v. State of Kerala the Supreme Court said: The resul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he income from a business under the provisions of the Income Tax Act be not deducted and be considered to be a part of the taxable agricultural income. 11. We do not understand this decision to mean anything more than "that agricultural income from tea plantations is to be computed in the same manner as it is computed under the provisions of the Income Tax Act", and that "in computing such agricultural income for the purpose of taxation under the Agricultural Income Tax Act, the explanation to section 2(a)(2) of that Act must be kept in mind and the income must be taken to be as defined for the purposes of the enactments relating to Indian income-tax". The first quotation is from page 88 and the second from page 89 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, for example, in cases of best judgment assessments, in cases where the assessment under the Indian Income Tax Act, 1922, has not been made or finalised and in cases where the accounting year of an assessee for the purposes of the Indian Income Tax Act, 1922, and the Agricultural Income Tax Act, 1950, is not identical but different. 16. Our attention was drawn to the unreported decision of a Division Bench of this court in T.R.C. No. 91 of 1959. That was a case, not under the Agricultural Income Tax Act, 1950, but under the Madras Plantations Agricultural Income Tax Act, 1955; and in view of that and of rule 7 of the Madras Plantations Agricultural Income Tax Rules, 1955, we did not consider it necessary to refer these cases to a fuller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17. In the light of what is stated above, we must say that the Agricultural Income Tax Officer is not bound "to follow the computation of income from tea made by the Central Income Tax Officer" and that "he can find out the income from tea plantations applying the provisions of the Indian Income Tax Act and make the assessment exercising his powers under the Agricultural Income Tax Act" and answer the last question in I.T.R. Nos. 42 and 43 and the only question I.T.R. No. 44 in favour of the department and against the assessees. We do so; but, in the circumstances of the case, without any order as to costs. 18. A copy of this judgment under the seal of the High Court and the signature of the Registrar will be forwarded ..... X X X X Extracts X X X X X X X X Extracts X X X X
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