PTHUTOTAM ESTATES LTD Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THIS tax revision case has been filed by the assessee to revise the order of the Commissioner of Agrl. I.T., Madras, dated July 13, 1973. The assessee was assessed for the assessment year 1970-71 to agricultural income-tax under the Tamil Nadu Agrl. I.T. Act, 1955, by the Agrl. ITO, Coimbatore, by his order dated September 19, 1971. He determined a loss of Rs. 52, 377. The assessee appealed to the AAC and the appeal was disposed of by the Assistant Commissioner on January 31, 1972.

(2.) IN the said appeal, the AAC held that the assessee was eligible for the development allowance on new tea plantings under s. 33A of the I.T. Act, 1961. The AAC directed the Agrl. ITO to allow the claim on the production of a certificate from the Tea Board. Thereafter, the assessee filed an appeal to the Agrl. I.T. Appellate Tribunal in respect of other matters and his appeal came to be disposed of by the Tribunal on August 24, 1972. The Commissioner of Agrl. I.T. took proceedings under s. 34 of the Tamil Nadu Agrl. I.T. Act, 1955, in March, 1973. IN the view of the Commissioner, the assessee was only growing tea and was not a manufacturer of tea so that r. 7 of the Tamil Nadu Agrl. I.T. Rules would have no application to him. Consequently, in the opinion of the Commissioner of Agrl. I.T., the development allowance granted by the Assistant Commissioner was not proper. He, therefore, issued a notice to the assessee asking it to show cause why the order of the Assistant Commissioner in so far as it allowed the claim for development allowance should not be revised. After hearing the assessee, the Commissioner of Agrl. I.T. came to the conclusion that the allowance as given by the Assistant Commissioner was wrong and, therefore, he directed that the orders passed by the Assistant Commissioner January 31, 1972, be set aside and the order of the Agrl. ITO dated September 19, 1971, be restored in respect of this item of allowance.

(3.) THE relevant provisions are as follows