SHANTHIVARMA JAIN M P Vs. STATE OF KERALA

JUDGEMENT

(1.) The Agricultural Income Tax and Sales Tax Appellate Tribunal, Kozhikode has referred the following questions for decision of this Court under S.60(1) of the Agricultural Income Tax Act, 1950 (hereinafter referred to as 'the Act') at the instance of the assessee:

(2.) The assessee is the President of the "MSP. Family Jain Trust" (hereinafter referred to as 'the Trust') in Kalpetta North and the income assessed is the agricultural income from the properties of the Trust The assessment relates to the year 1974-75. The Agricultural Income Tax Officer brought the income of the Trust to tax overruling the contention of the assessee that the Trust is entitled to exemption under S.4 of the Act. His alternative contention that the income of the Trust spent within the State is not taxable was also not accepted. The assessment order was confirmed in appeal by the Appellate Assistant Commissioner of Agricultural Income Tax and Sales Tax, Kozhikode. In further appeal at the instance of the assessee the Tribunal confirmed the assessment subject to certain directions in regard to the claim for expenses and depreciation.

(3.) The answer to the questions of law referred to this Court depends on the interpretation of the relevant provisions of the Agricultural Income Tax Act, 1950 as amended by Kerala Act 9/1974. Even though the applicability of the amendment Act to the present case is questioned and is directly covered by question No. 1 referred to this Court, counsel for the assessee concedes that the Act as amended in 1974 is applicable to the assessment proceedings in the present case and question No. 1 should be answered in favour of the Department in the light of the decision of the Supreme Court reported in Karimtharuvi Tea Estate Ltd. v. State of Kerala (60 ITR. 262).