GRAIG JONES D G Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE four revision petitions arise out of the common order of the Karnataka Tribunal, Bangalore, dt. 7th Aug., 1981, made in AIT. Nos. 83 to 86 of 1980.

(2.) THE petitioner is an owner of coffee estates and is an assessee under the Karnataka Agrl. IT Act, 1957 (the "Act"). In the returns filed by the assessee for the asst. yrs. 1964-65 to 1967-68, the assessee estimated the value of the coffee points at different rates in her returns. THE assessments for these years were completed on the basis of the final dividend as declared by the Coffee Board which was slightly more than the value estimated by the assessee for each of the years.

(3.) BEFORE we examine this contention, it may be relevant to state that if the Coffee Board had not declared the final dividends before the assessments were concluded, the AO was bound to accept reasonable estimates made by the assessee and conclude the assessments since that method was throughout accepted by the Department. Should this principle be given a go-by merely because the Coffee Board had declared the dividends by the time the assessment was concluded ? We do not think that it should make any difference in the absence of any finding recorded by the AO that the method of accounting adopted by the assessee cannot be accepted for any reason or in the absence of a finding that the valuation made is considered to be at too low a rate. Our view finds full support from the provisions of s. 7 r/w cl. (c) of r. 9 of the Karnataka Agrl. IT Rules, 1957, and also by the decision of this Court in B. V. Veerathradhya vs. Commr. of Agrl. IT. (1973) 87 ITR 193 (Kar) : TC1R.341.