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TMI Blog1997 (3) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... y be stated as under : The petitioner, which is a public limited company, doing business of tea after cultivation and manufacture of the same paid cess to the tune of Rs. 17,70,096 for the assessment year 1993-94 on the green leaves under the Assam Taxation (on Specified Land) Act, 1990. It is stated that in view of the provisions laid down under section 8(2)(e) of the Agricultural Income-tax Act, 1939, the cess paid is to be deducted only from 60 per cent. of the computed income of tea. The petitioner, therefore, claimed deduction of a sum of Rs. 17,70,096 from 60 per cent. of the income that is Rs. 21,07,843. Thus, after paying the aforesaid amount as cess, the petitioner approached for a tax clearance certificate by submitting an appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner has already been informed that even though the Commissioner of Taxes, Assam, informed the petitioner that he is entitled to deduction of the amount from 60 per cent. of the composite income the matter was subsequently disputed by the State Government and hence no reliance can be placed upon the aforesaid letter. Dr. Saraf, learned counsel appearing on behalf of the petitioner, has however drawn my attention to section 2(1A) of the Income-tax Act, 1961, to show what agricultural income means. According to section 2(1A), " agricultural income " means any rent or revenue derived from land which is situated in India and is used for agricultural purposes ; (b) any income derived from such land by--(i) agriculture ; or (ii) . . . In this con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . v. State of (Orissa [1991] Suppl. 1 SCC 430. Under paragraph 40 of the judgment their Lordships made the following observation . . . " In other words, the levy cannot be correlated to any services rendered or to be rendered by the State Government to the class of persons from whom the levy is collected. Whether royalty is a tax or not, the cess is only a tax and cannot be properly described as a fee. " The other decision referred to by Dr. Saraf in respect of his contention that cess is also a tax is a decision of the Lahore High Court rendered in the case of Daulat Ram v. Municipal Committee, AIR 1941 Lahore 40. In the aforesaid case it was argued before the court that cess is something which is a tax or duty. Consequently, the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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