UMMER PLANTATIONS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS petition arises out of an order made by the Commissioner of Agricultural Income-tax on February 13, 1980, under s. 35 of the Karnataka Agricultural Income-tax Act, 1957 (for short "the Act") for the assessment year 1968-69. Two assessments were made, one for the period from April 1, 1967, to September 2, 1967, on one Siddeque Ummer Saheb as individual and another for the period September 3, 1967, to December 31, 1968, (sic) on the firm, M/s. Ummer Plantations, Suntikoppa. Siddeque Ummer Saheb died on September 2, 1967, and after his death his legal representatives, viz., his widow, sons and daughter, succeeded to the estate and they constituted a firm with effect from September 3, 1967, contributing their respective interests that devolved on them under the Mohamedan law.

(2.) WHILE computing the income of the firm for the year ending March 31, 1968, the ITO did not allow the expenditure incurred by the deceased up to September 2, 1967, and allowed only the expenditure incurred by the firm after September 2, 1967, and up to the end of the year.

(3.) IN our opinion, it is unnecessary to go into the application of s. 15 of the Act which provides for carry forward of loss. The question involved herein is a simple question of computation of the income for the crop year ending March 31, 1967. It is common experience that in the case of a coffee estate, the income received is always relatable to the entire season. While determining that income it goes without saying that the expenditure incurred to earn that income must normally be allowed in the assessment of the recipient of that income. IN the instant case, upon the death of Siddeque Ummer Saheba, his legal heirs succeeded to the estate of the deceased which consisted of all the assets and liabilities of the estate.