OSSOR ESTATES LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) AN interesting question of law would arise for our consideration and decision in this revision petition. The question is, whether the turnover tax paid by the assessee under the provisions of the Karnataka sales Tax Act, 1957 ('kst Act' for short), can he be claiming deductions under the provisions of Karnataka Agricultural Income tax Act, 1957 ?

(2.) THE basic facts are the assessee is a Public Limited Company. It has large extent of coffee plantation. For the assessment year 2001-2002, the assessee had filed its return of income before the assessing authority and had claimed deductions of the turnover tax paid by it as a 'trader' under the provisions of KST Act. The assessing authority, after issuing a proposition notice and after considering the objections filed by the assessee, has rejected the ctaim of the assessee. The assessee had unsuccessfully carried the matter before the first appellate authority as well as before the Income Tax Appellate Tribunal (Tribunal for short ). Having failed before all the authorities, the assessee is before us in this revision petition.

(3.) SRI Ramabhadran, Learned Counsel appearing for the assessee would contend, that all the authorities under the Act as well as the Tribunal were not justified in rejecting the claim of the assessee in so far as the deductions claimed while computing the tax payable under the KST Act. In aid of his submissions, the Learned Counsel has taken us through the provisions of Sec. 5 (1) (a) (ii) of the Karnataka agricultural Income Tax Act.