9911796707
TMI Blog1996 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... Kerala Agricultural Income-tax Act, 1950 (hereinafter referred to as "the Act"), on the files of the Inspecting Assistant Commissioner of Agricultural Income-tax, Trichur. The petitioner executed an agreement dated July 25, 1974, in favour of a purchaser to sell 13,600 old and uneconomic rubber trees from an area of about 100 acres of its estate for a total consideration of Rs. 4,08,000. Annexure "A" is a copy of the said agreement as per which the purchaser was permitted to uproot and remove the trees within a period of three years. While completing the assessments for the years in question, the Assessing Officer proposed to assess a portion of the consideration received on execution of the agreement as income from slaughter tapping assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord for the assessing authority to believe that all the rubber trees sold were uprooted only during the last year of the agreement, that is to say, during the previous year relevant to the assessment 1977-78. The Tribunal did not approve the ratio of bifurcation of income adopted by the assessing authority. After considering the entire matter, the Tribunal directed 60 per cent. of the receipt to be treated as the sale value of rubber trees which is not exigible to agricultural income-tax and the balance 40 per cent. alone as income from slaughter tapping exigible to agricultural income-tax. It is against the said common order that the present revision cases are filed. The questions of law raised before us for decision are as follows : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ossible and in any case on or before June 30, 1977, whereas clause 4 of the agreement specifies that the scheduled property on which the rubber trees sold are standing, shall continue in the possession of the vendor and since the said property is intended to be replanted in 1977 the vendor shall have the full and unrestricted right to make pits, fence, and to cut roads and paths, etc. On an anxious reading of the different clauses of the agreement, we do not see any provision with regard to the yield which will be derived from the trees which are agreed to be sold and on that aspect the agreement is silent, even though counsel for the petitioner points out that the petitioner has transferred the trees to the purchaser for uprooting and remo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the purchaser to whom the trees were sold. The case being that there was income from the property, the provision should have been there in the agreement and in the absence of any provision in that regard this court cannot accept the contention that by reason of sale deriving of income from the property ceased to exist. The assessing authority, in view of the composite nature of the agreement, apportioned Rs. 3,06,000 towards income from slaughter tapping and the balance of Rs. 1,02,000 towards the value of timber. In other words, three-fourths of the total consideration was treated as agricultural income and one-fourth was treated as value of timber. However, in appeal, the Tribunal came to the conclusion that this provision has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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