Hegde, J. - (1.) This is an appeal by special leave. It relates to the assessment of the assessee for the assessment year 1961-62, for which the relevant previous Year was the calendar year 1960.
(2.) The assessee is a Tea Company. Upto the assessment year 195051 the Agricultural Income-tax Officer was accepting the computation of the total income from the growth, manufacture and sale of tea made by the Income Tax Officer and taking 60 per cent of the income determined as the agricultural income under R. 24 of the Income-tax Rules. On and from the assessment year 1951-52 the agricultural income-tax authorities started taking the market value of thatch, bamboo and fuel etc. grown in the tea estate and used in the tea business as 100 per cent agricultural income and after deducting the cost of cultivation thereof, taxed the whole of the resulting income on the basis of the market value of those articles. So from that assessment year the computation of the total income from tea by the Income-tax authorities was varied by the Agricultural Income-tax Officer and the assessee had to pay tax on a total income which was more than the income disclosed in the Profit and Loss Account.
(3.) For the assessment yea:1961-62, the assessee company was assessed to Income-tax under Rule 24 of the Income-tax Rules, on its Profit as per its Profit and Loss Account with certain modifications by the Incometax Officer. In the expenses debited in its accounts, only the expenses for raising of thatch, bamboo, fuel etc. grown in the tea estate and used in the tea business were included.;