JAY SHREE TEA & INDUSTRIES LTD. & ANOTHER Vs. AGRICULTURAL INCOME TAX OFFICER & OTHERS
LAWS(GAU)-1994-4-18
HIGH COURT OF GAUHATI
Decided on April 26,1994

JAY TEA AND INDUSTRIES LTD AND ANR Appellant
VERSUS
AGRICULTURAL INCOME TAX OFFICER AND ORS Respondents




JUDGEMENT

- (1.)The Petitioner is a company registered under the Companies Act which owns and holds amongst others Tea Estates in the State of Assam and carries on business of growing and manufacturing tea in those Tea Estates. The Petitioner is, therefore, an Assessee to Agricultural Income Tax under the provisions of the Assam Agricultural Income Tax Act, 1939. Annual income earned by the Petitioner in the business of growing, manufacturing and selling tea in the Tea Estates are assessable to Agricultural Income Tax Act and Income Tax Act as follows:
60% of the income treated as Agricultural income, while 40% thereafter is assessed under the Income Tax, 1961.

(2.)In respect of the assessment year 1981-82 the Petitioner filed return under the provision of the Assam Agricultural Income Tax Act, hereinafter mentioned as the Act, on 28.12.81 showing Agricultural income at Rs. 64,39,436/- and the Petitioner paid the agricultural, income tax amounting to Rs. 48,29,577/- as per the said return on 31.12.81. But in respect of assessment year 1981-82 the Respondent No. 1 finally assessed the Petitioner's income at Rs. 78,90,878/- and determined Rs. 59,18,159/- as tax assessable under the provision of the Act. After adjusting the amount of tax deposited with the return the Respondent No. 1 determined Rs. 10,88,502/- as the balance of the tax payable by the Petitioner. Although the Petitioner paid more than 80% of the finally assessed amount of tax with the return, the Respondent No. 1, however, imposed interest @ 12% per annum on and from 1.4.84 to 13.11.84 amounting to Rs. 80,917/-. Total Remand was thus computed as per assessment order at Rs. 11,69,499/- in respect of the assessment year 1981-82.
(3.)In respect of the assessment year 1982-83 the Petitioner filed return under the provision of the Act on December, 20, 1982 showing annual income at Rs. 83,01,456/- and as per the said return paid Agricultural Income Tax amounting to Rs. 62,26,092/- on December, 29, 1982, The Petitioner company thereafter made additional payment amounting to Rs. 5,75,000/- on account of Agricultural Income Tax in respect of the said assessment year on December, 14,1984. The Respondent No. 1, however, by the impugned assessment order passed under Section 20(3) of the said Act determined agricultural income of the Petitioner in respect of the assessment year 1987-83 at Rs. 93,14,163/- and assessed Agricultural Income Tax thereon at Rs. 69,85,622/-. After adjusting the tax already paid with the return the Respondent No. 1 determined the balance amount of tax payable by the Petitioner in respect of the assessment year 1982-83 at Rs. 1,84,530/-, Although the Petitioner deposited more than 75% of the tax finally assessed in respect of the assessment year 1982-83 along with the return, the Respondent No. 1, however, charged interest @ 12% per annum on the balance amount of tax on and from 1.4.84 to 31.12.84 amounting to Rs. 64,052/- under Section 20(C)(3) of the said Act.


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