ATHITHOPE ESTATE Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS revision arises out of the order of the Commr. of Agrl. I. T., Bangalore, dated January 17,1980, made under s. 35 of the Karnataka Agriculture IT Act, 1957 (called shortly "the Act").

(2.) THE assessee is a firm consisting of 12 partners. It was constituted under a deed of partnership dated February 21, 1973. THE firm purchased an estate know as "Athithope Estate", Siddapur, under a sale deed dated March 29, 1973. THE deed provided that, as and from the 1st day of April, 1972, the expenses for the cultivation of the coffee plantations and other products shall be borne by the purchasers. Regarding the crops, the deed further provided that all payments due from the Coffee Board in respect of the coffee delivered to the pool during 1971- 72 season and prior seasons are the properties of the vendors and the purchasers and entitled to all payments relating to the crop for the year 1972-73 and subsequent years. As per these terms, the assessee paid to the vendors by way of reimbursement a sum of Rs. 1,45,823.38 representing the expenditure incurred by the latter in raising the coffee crop from April 1, 1972, till the estate was sold.

(3.) BEFORE us, Mr. Sarangan, learned counsel for the petitioner, urged two contentions. The first contention relates to the expenditure reimbursed to the previous owners of the estate. The second contention is concerned with the validity of the registration of the assesseee-firm.