HONEY COMB ESTATE Vs. AGRICULTURAL INCOME TAX OFFICER

JUDGEMENT

(1.) AN identical question arise in all these writ petitions. For the sake of convenience, the facts in Writ Petition No. 10861 of 1987 are stated hereinafter.

(2.) THE petitioner is an assessee under the Karnatake Agricultural Income-tax Act, 1957 (hereinafter referred to as the "Act"), an owns a coffee estate in the State. THE petitioner has been following the mercantile system of accounting and has been disclosing the coffee income on the basis of actual points declared by the Coffee Board. A return under the Act was filed adopting the said basis, valuing the coffee crops for the relevant season at Rs. 4 per point; this was the actual rate declared by the Coffee Board for the particular year. However, the respondent valued the coffee crops at Rs. 7 per point, stating that it was the average of the rates of the past 3 years; by this process, the respondent adopted the first proviso to rule 9 (c) of the Agricultural Income-tax Rules ("the Rules"). This method adopted by the respondent while assessing the petitioner's income is under challenge.

(3.) THE relevant rule 9 reads :