CONSOLIDATED COFFEE LIMITED Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) AMONG others, the petitioner - a public limited company incorporated under the Companies Act, owing several coffee estates in the District of Coorg - is an assessee under the I.T. Act, 1961 (hereinafter referred to as "the Act") on the file of the ITO, Company Circle-IV, Bangalore (hereinafter referred to as "the ITO"). For the assessment year 1963-64 relevant to the accounting year ending on June 30, 1962, the petitioner filed its return disclosing a total world income of Rs. 5,13,375, inter alia, disclosing that it had received certain amounts by sale of timber extracted in its coffee estates and claimed that as an agricultural income not chargeable to tax under the Act. But, the ITO by his order dated February 3, 1964, (exhibit "A"), rejecting the claim of the petitioner on timber sales, held that a sum of Rs. 11,91,508 representing the sale of timber was a "revenue receipt" and was chargeable to income-tax under the Act. On that basis, he completed the assessment for the year 1963-64.

(2.) AGAINST that part of the order of the ITO that represented the sale of timber, the petitioner filed an appeal before the AAC, Mysore Range, Mysore (hereinafter referred to as "the AAC"), who by his order dated March 11, 1966, (exhibit "B"), dismissed the same and affirmed the order of the ITO.

(3.) BUT, this court on reframing those questions as hereunder :