ENGLISH AND SCOTTISH JOINT CO-OPERATIVE WHOLESALE SOCIETY LTD Vs. COMMISSIONER OF AGRICULTURAL INCOME-TAX, ASSAM

JUDGEMENT

(1.) This is a reference by a member of the Board of Agricultural Income-tax, Assam, pursuant to Section 28 (1) of the Assam Agricultural Income-tax Act, 1939 (hereinafter called the Assam Act), and is with regard to the English and Scottish Joint Co-operative Wholesale Society Ltd. (hereinafter called the Society). The question which this Courts is required to answer is : Whether the Society is chargeable to Assam agricultural income-tax in respect of the cultivation and/or manufacture of tea at its Deckiajuli estate in the Province of Assam and sold to its members ?

(2.) Agricultural income is defined, so far as is material, in the Indian Income-tax Act as follows :- Section 2 (1) : agricultural income means...... (b) any income derived from such land by - (i) agriculture. Such land in (b) is land which is used for agricultural purposes. By Section 4 (3) (viii) of the same Act agricultural income is not chargeable to income-tax. Section 2 (a) (2) (i) of the Assam Act defines agricultural income identically as it is defined in the Income-tax Act. An explanation to the section provides that :-

(3.) Agricultural income derived from such land by the cultivation of tea means that portion of the income derived from the cultivation, manufacture and sale of tea as is defined to be agricultural income for the purposes of the enactments relating to Indian income-tax.