P SELVAMONY Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessees are aggrieved by the order of the CIT suo motu revising the order of assessment made on the assessees for the asst. yr. 1987-88 as also the commutation permitted for the asst. yr. 1988-89. THE CIT has set aside those assessments and has held that the income of the assessees who are husband and wife should be clubbed and the entire income assessed in the hands of the husband.

(2.) IT is not in dispute that the husband and wife have separate holdings from which they derive agricultural income. IT is also not in dispute that the properties were acquired by them in the year 1964 under sale deeds executed by their vendors, separately in the name of the husband and separately in the name of the wife. IT is further not in dispute that the assessment of these two individuals were done separately from the year 1975-76 right up to 1987-88. The assessments were made on the basis of the returns filed by them separately and for the asst. yr. 1988-89 they were permitted to compound their liability for agricultural income-tax, under s. 65 of the TN Agrl. IT Act, again separately.

(3.) THE order of the CIT is, it was submitted by the learned special Government pleader, in accordance with the provisions of the TN Agrl. IT Act, more particularly, s. 9(2)(a)(iii) of the Act which provides that in computing the total agricultural income of any individual for the purpose of assessment, there shall be included so much of the agricultural income of a wife or minor child of such individual as arises directly or indirectly from assets transferred directly or indirectly to the wife by the husband otherwise than for adequate consideration or in connection with an agreement to live apart.