STATE OF TAMIL NADU Vs. P VELAYUTHA PADAYACHI

JUDGEMENT

(1.) THIS is a petition under section 54 (1) of the Tamil Nadu Agricultural Income-tax Act, 1955, to revise the order of the Tamil Nadu Agricultural Income-tax Appellate Tribunal dated October 30, 1971, holding that cashew trees are not fruit-bearing trees, but nut-bearing trees. The question arose in the context of the assessability of the respondent herein to agricultural income-tax under the provisions of the Tamil Nadu Agricultural Income-tax Act, 1955. Section 10 (1) of the said Act exempts a person holding land not exceeding 12 1/2 standard acres from the operation of the Act. The expression "standard acre" has been defied in clause (vv) of section 2 as meaning, among others, two acres of tope. The word "tope" itself has been defined in clause (y) of section 2 as meaning "any land containing large groups of fruit trees or valuable timber trees, whether growing spontaneously or grown artificially and includes orchards." *In the present case, the respondent herein was admittedly owning 17.25 ordinary acres of land where cashew trees were grown. What is the extent in standard acres of this 17.25 acres of cashew trees, with reference to the exemption limit provided for in section 10 (1) referred to already, came to be considered by the Tribunal.

(2.) THE contention of the respondent was that cashew trees are not fruit-bearing trees, but only nut-bearing trees, and, therefore, the land containing those trees will not come within the scope of the definition of "tope" as contained in section 2 (y) of the Act. THE Tribunal accepted this contention of the respondent herein and directed the lower authorities to arrive at the standard acres in respect of the 17.25 acres on the basis that they are unirrigated dry lands and not "tope" as coming within the scope of section 2 (y) of the Act. It is the correctness of this conclusion that is challenged in the present tax revision petition.We have no hesitation in holding that the Tribunal was in error in coming to the conclusion that the cashew trees are not fruit-bearing trees but nut-bearing trees. THE Tribunal in paragraph 6 of its order points out thus :"THE cashew trees are grown not for their fruits, but only for their nuts.