VISWANATHA CHETTIAR Vs. AGRICULTURAL INCOME TAX OFFICER MERCARA

JUDGEMENT

(1.) In this reference under section 54 of the Coorg Agricultural Income-tax Act, 1951, to be hereinafter referred to as "the Act", two questions of law have been referred to us for our opinion. They are : "1. Whether there were materials for the Commissioner of Agricultural Income-tax to hold that the status of the applicant is an `association of persons' for purposes of assessment under the Coorg Agricultural Income-tax Act, 1951 ?

(2.) Whether the sale proceeds of timber removed from the petitioner's estate can form part of agricultural income ?" Hegde, J. 2. Sri E. M. Muthappa Chettiar, the former owner of the estate called the "Cotacaudu and Jeynacaudu Estates", Sontikoppa, Coorg, by a deed of settlement dated December 19, 1955, transferred the right of ownership of the estate to his three sons in shares who continued to administer and cultivate the lands of the estate as equal partners. As the ownership of the estate was merely transferred from the father to the sons, the Agricultural Income-tax Officer, Coorg, treated the status of the assessee as that of an "association of persons" and assessed them to tax. Being aggrieved to the assessment, an appeal was filed before the Deputy Commissioner of Agricultural Income-tax, Coorg, who remanded the case for fresh disposal, but the appellate authority upheld the stand taken by the assessing officer in so far as the question of status was concerned. As could be seen from the order of assessment passed by the Agricultural Income-tax Officer on March 14, 1960, the right of co-ownership and separate assessment was passed, but it was turned down as there was no such provision under the Coorg Agricultural Income-tax Act, 1951, analogous to section 3(3) of the Mysore Agricultural Income-tax Act, 1957, or section 9(3) of the Indian Income-tax Act, 1922.

(3.) The petitions filed a revision petition before the Commissioner of Agricultural Income-tax and the same was dismissed for reasons discussed in my order dated December 29, 1961. The present reference application has arisen out of this order setting out therein the following points of law :