GEORGE WILLIAMSON ASSAM LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) QUESTIONING the Constitutional validity of the provisions of Section 115-O (1) and Section 115-O (3) of the Income Tax Act, 1961, (hereinafter referred to as the "act") so far as levy of the additional Income Tax on dividends distributed on the basis of agricultural income; on the ground of legislative incompetence of the Parliament and also praying for a Writ in the nature of Mandamus to cancel/withdraw the levy of additional Income Tax assessed upon the petitioners for the period 1996-97 to 1999-2000, the present writ petition has been filed.

(2.) WE have heard Dr. D. Pal, learned senior Counsel along with Dr. A. K. Saraf, learned senior counsel and Mr. U. Bhuyan, learned Standing counsel for the Revenue.

(3.) THE necessary facts, relevant for the purpose of disposal of this writ petition, inter alia, are that the petitioner No. 1 is a company limited by shares, of which the petitioner No. 2 is the shareholder. The petitioner No. 1 own several tea estates within the State of Assam, wherein it produces green tea leaves by agricultural process and manufactures black tea therefrom in each of its tea estates and sells in the market. The petitioner also purchases green tea leaves from other tea estates and manufactures black tea and derives income therefrom. The petitioner No. 1 is an assessee under the Income Tax Act and necessary assessments have been completed upto the assessment year 1997-98, it duly filed all the returns upto the assessment year 1999-2000 and paid all taxes either by way of advance tax or by way of tax deducted at source and/or on self assessment and/or on the basis of demand after finalization of assessments and since the income of the petitioner company is a composite one, all the returns showing the income and all the taxes on the said income were paid on the income determined as per Rule 8 of the Income Tax Rules, 1962. It is further pleaded that the petitioner No 1 is also an assessee under the Assam Agricultural Income Tax Act, 1939 and duly filed returns before the Assam Agricultural Income Tax Authority upto the assessment year 1999-2000.