DEPUTY COMMISSIONER Vs. YUCOS FAMILY TRUST

JUDGEMENT

(1.) All these T.R.Cs. are filed against the common order passed by the Agricultural Income Tax Appellate Tribunal, Additional Bench, Kozhikode. Government has come in revision. Question for consideration is regarding the interpretation of S.12 of the Agricultural Income Tax Act read with R.13 of the Kerala Agricultural Income Tax Rules.

(2.) The assessment was originally completed by the. Agricultural Income Tax Officer, Mananthavady by order dated 4th June, 1996 allowing carry forward of the loss sustained in the previous year and setting off the same against the agricultural income derived during the subsequent year. Subsequently, on verification, the Assessing Authority found that an error had been crept in while granting carry forward of the loss sustained in the previous year, since the assessee had not submitted return in time during the previous year and that by virtue of R.13 of the Kerala Agricultural Income Tax Rules, the assessee is not entitled to carry forward of the loss sustained in the previous year. In.that view of the matter, the Assessing Authority passed a revised order, disallowing the cany forward of the loss made by the assessee. The assessee filed an appeal before the Appellate Assistant Commissioner (AITA), Kozhikode, who on his part affirmed the order of assessment and consequently dismissed the appeal. Against that the assessee filed further appeals before the Tribunal. The Tribunal allowed the appeals holding that the assessee is entitled to carry forward of the loss. It is against that these T.R.Cs. are filed.

(3.) S.12 of the Kerala Agricultural Income Tax Act reads (hereinafter referred to as 'the Act') as follows" "Where any person sustains a loss as a result of computation of agricultural income in any year, the loss shall be carried forward to the following year and set off against the agricultural income of that year and if it cannot be wholly set off, the amount of loss not so set off, shall be carried forward to the following year and so on, but no loss shall be carried forward for more than eight years". Thus a reading of S.3 2 of the Act will show that the only limitation is that loss can be earned forward only for eight years. There is no other condition attached. R.13 of the Kerala Agricultural Income Tax Rules is as follows: "Carry forward of loss in accordance with S.12 is admissible in any year when return is filed for all the years on the due date or within such time as may be allowed by the Agricultural Income Tax Officer along with audited statement of accounts and a statement in Form 17."