COMMISSIONER OF INCOME TAX Vs. P K VEERAN

JUDGEMENT

(1.) THIS is a reference by the Tribunal, Madras, Bench, under s. 66(1) Of the Indian IT Act, 1922. The assessment years concerned are 1950-51, 1953-54, 1954-55 and 1955-56. The accounting periods are the Malayalam years 1124,1127, 1128, and 1129, respectively. The reference is at the instance of the CIT, Kerala, at Ernakulam. We shall first deal with the second of the two questions referred. The question reads as follows :

(2.) THE sole question for determination is whether the conversion of the coconuts grown by the assessee into copra and the retting of the husks by him is a "process ordinarily employed by a cultivator to render the produce raised fit to be taken to market" or not. The Tribunal said :

(3.) THE Departmental representative contends that no ground has been taken and so this point cannot now be urged. In reply, the counsel for the assessee contends that under r. 27 of the Tribunal Rules, when on the merits he has succeeded before the AAC it is open to him as a question of law to agitate this matter before us. The departmental representative claims that if we allow the assessee to agitate this matter now, he must be given an opportunity to rebut it. We may state that in the view we are taking of the case, it is unnecessary to pronounce on this issue."