DAMODARA MARAR Vs. CAIT

JUDGEMENT

(1.) In this reference under the Travancore-Cochin Agricultural Income Tax Act, two questions have been referred by the Commissioner of Agricultural Income Tax, namely, (i) whether the assessments for 1126 and 1952-53 are based on any evidence at all; and (ii) whether the income for 1126 (accounting period 1125 M.E.) was assessable under Act XXIII of 1121 (Travancore Income Tax Act).

(2.) What is meant by question No. 2 is whether the assessment for 1126 is governed by the Travancore-Cochin Agricultural Income Tax Act of 1950 or by the Travancore Income Tax Act, XXIII of 1121. The Malabar Year 1126 commenced on 16-8-1950, and at that time the Travancore-Cochin Agricultural Income Tax Act had not come into force, and it was the Travancore Income Tax Act XXIII of 1121 which was then in force. Following the decision in Commissioner of Income Tax v. Helen Rubber Industries Ltd. 1959 KLT 373 (1958 KLJ 1097) in which it has been held that assessments will be governed by the law as it is in the assessment year, we hold that the assessment in question in this case is governed by the Travancore Income Tax Act XXIII of 1121, and not by the Travancore-Cochin Agricultural Income Tax Act. Question No. 2 is answered accordingly.

(3.) Coming to question No. 1 we find from the assessment order that the Agricultural Income Tax Officer made the assessment on the basis of the area under cultivation and the increased prices of commodities. It does not appear from the records brought to our notice that in the appeal which he had filed against the assessment the assessee had made any complaint as to the difference between the statement in his return and the estimate of the Agricultural Income Tax Officer in respect of the area or extent of his lands. The rates of prices adopted in the assessment order are the general rates adopted for the locality and not any special rates fixed for the assessee alone. In the circumstances, we hold that the assessments in 1126 and 1952-53 are based on sufficient evidence. Question No. 1 is answered accordingly.