COMMISSIONER OF AGRICULTURAL INCOME TAX Vs. PANAMPUNNA ESTATES

JUDGEMENT

(1.) THIS reference, at the instance of the Commissioner of Agricultural Income-tax, Thiruvananthapuram, under Section 60(1) of the Agricultural Income-tax Act, 1950, arises from an order of the Kerala Agricultural Income-tax Appellate Tribunal, Addl. Bench, Kottayam, in A. I. T. A. No. 41 of 1982. The relevant assessment year is 1974-75. The questions referred to this court are as follows :

(2.) THE facts relevant are as follows: THE assessee, Panampunna Estates, Kottayam, is a registered firm. For the assessment year 1974-75, the assessee returned a total income of Rs. 69,923. In the light of an inspection conducted by the Intelligence Officer, Kottayam, on August 5, 1975, in the estate and head office of the assessee, revealing heavy suppression in all aspects and serious inflation of expenses, the books of account were rejected. THE assessment was completed on a total income of Rs. 2,24,939 as per assessment order dated August 28, 1978. THEreafter, the assessing authority initiated proceedings under Section 35 of the Kerala Agricultural Income-tax Act, 1950, and the assessment was completed as per order dated July 2, 1979. THE assessing authority reopened the assessment on the ground that the value of 2,748.9 kgs. of rubber, amounting to Rs. 14,294.28 had escaped assessment. This information was obtained by the assessing authority from the records seized by the Intelligence Squad, Kottayam, at the time of inspection of the estate and head office of the assessee-firm on August 5, 1975, and August 6, 1975.

(3.) THE relevant portion of Section 35 of the Kerala Agricultural Income-tax Act, 1950, reads as follows :