GEORGE WILLIAMSON ASSAM LTD Vs. ASSISTANT COMMISSIONER OF TAXES

JUDGEMENT

(1.) In this agricultural income tax reference u/s 28(4) of the Assam Agricultural Income Tax Act, 1939, for short, 'the Act', the following questions have been referred to this Court by the Assam Board of Revenue for opinion of this Court :

(2.) George Williamson (Assam) Ltd. is a company incorporated under the Companies Act. The company owns tea estates in various parts of the State of Assam and engaged in cultivation, manufacture and sale of tea. It is an assessee under the Act. The relevant assessment years relating to the questions referred to above are 1982-83, 1983-84 and 1984-85. The assessee submitted returns of its agricultural income claiming deduction u/s 8(2)(f)(VII) of the Act. The Agricultural Income Tax Officer completed the assessment disallowing the claims of deduction. The assessee preferred an appeal before the Assistant Commissioner of Taxes (Appeals). This appeal was disposed of confirming the order of assessment passed by the Agricultural Income Tax Officer. Being aggrieved by the appellate order passed by the Assistant Commissioner of Taxes (Appeals), the assessee preferred yet another appeal before the Assam Board of Revenue. The matter was taken up by a Full Bench of the Board and by order dated 5,12,90 the Board upheld the order passed by the Assistant Commissioner of Taxes (Appeals). While disposing of the appeal the Board held that in order to get deduction of the amount it must first be ascertained whether those expenses relate to agricultural operation. According to the Board, the deduction in respect of the expenses can be allowed if the assessee incurred the expenses in agricultural activities. Being aggrieved, the appellant requested the Board to refer the above questions to this Court, The Board, however, refused to make the Reference of the above questions on the ground that no question of law involved in those questions. Situated thus, the assessee approached this Court by filing a petition u/s 28(4) of the Act and this Court in Civil Rule No. 2(M), 3(M) and 4(M) of 1993 by a common judgment directed the Board to refer the above questions. Hence the present Reference.

(3.) We have heard Mr. R. Gogoi, learned counsel assisted by Mr H. Roy, learned counsel appearing on behalf of the assessee and Dr. B.P. Todi, learned Addl. Sr. Govt. Advocate, Assam for the Revenue.