ASSESSMENT--Not to be capricious or vindictive
Held:
As per the charging provision under s. 3 of the Agricultural IT Act, tax is charged for each financial year on the total agricultural income of the previous year of the assessee. In the present case, the estimate of agricultural income from tea for the purpose of assessment is not of the income during the previous year, but the taxable turnover on sal of tea during the relevant assessment year itself. The assessment accordingly is not in conformity with s. 3. The admissible deductions under the Act for expenses of cultivation, maintenance etc. are not allowed in accepting the taxable turnover as the agricultural income from tea for the relevant assessment year. The estimation of agricultural income from tea as equal to the taxable turnover on the sale of tea for the relevant assessment year is clearly wrong and hte orders of assessment are vitiated by these errors apparent on the face of the record.
AGRICULTURAL INCOME TAX
Assessment--JURISDICTION OF AGRL. ITO--Levying tax on that portion of income from sale of tea which, as per r. 8 of IT Rules, is to be treated as income under IT Act
Held:
Levy of tax by the State under the Agrl. IT Act can relate only to sixty per cent of the income derived from the slae of tea after allowing also admissible deductions under s. of the Agrl. IT Act. In the present case, the taxable turonver on the sale of tea for the respective assessment years is taken as the agricultural income from tea and the entire income is seen assessed in total idsregard of the constitutional provisions. The Agrl. ITO has no jurisdiction to levy tax on that portion of income from the sale of tea which as per r. 8 of the IT Rules is to be treated as income for the purpose of levy of tax under the IT Act, 1961.