UGAR SUGAR WORKS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) This revision under Section 55 of the KARNATAKA AGRICULTURAL INCOME-TAX ACT, 1957, 1957 (called shortly the 'Act') is directed against the order of the Tribunal dated July 3r, 1978 passed in A.T.T.A.P. No. 24 of 1976. The petitioner is a public limiied company (shortly 'the Company'). It has its sugar factory called "M/s. Ugar Sugar Works Ltd." at Ugarkhurd in Belgaum District. The Company also owns some agricultural lands wherein it grows sugarcane and utilises the same in the manufacture of sugar in its factory, in addition to the sugarcane it buys from other growers. For the assessment year 1957-58, the Company returned the agricultural income claiming several deductions. The deductions claimed are as follows :

(2.) The Agricultural Income Tax Officer, the Deputy Commissioner and the Appellate Tribunal all have disallowed all the claims and further added to the agricultural income Rs. 17,329/- as the profit on the sale of machinery. The correctness of the view taken by the Tribunal is questioned in this revision petition.

(3.) From the arguments addressed by counsel on both sides and on the material on record, the following questions arise for consideration :