Ashim Kumar Banerjee, J. - (1.) Altogether four writ petitions were filed calling in question the provision of section 115-0 of the Income-tax Act, 1961 (hereinafter referred to as "the said Act of 1961"). The writ petitions were dismissed by the learned Single Judge by judgment and order dated September 20. 2001 reported in 253, Income Tax Reports, Page 608 (Jayshree Tea and Industries Ltd. & Anr. vs. Union of India & Ors.). Hence, these appeals. Since these appeals involve identical question of facts and law these are disposed of by this common judgment.
(2.) The appellants in four appeals are four different tea companies who cultivate tea plants, pick up green tea leaves and thereafter process it in their factory for marketing the same. Cultivation of tea is considered to be an agricultural process whereas processing of tea, in the factory is an industrial process. Agricultural income is within the domain of the State and not the Union. Hence, Union is not empowered to levy tax on agricultural income which is within the domain of the State. In case of tea companies 60% of the income are considered to be an agricultural income and exempt from payment of income-tax. As such, the tea companies are required to pay income tax on 40% of their net income.
(3.) By the Finance Bill, 1997-98 Union proposed an additional income tax on the distributed profits in corporate sector in case any company decides to declare dividend and thereby distributes profits amongst the shareholders. By the said Bill levy of tax on dividend in the hand of the shareholders was withdrawn.;