AMDANG TEA CO INDIA LTD Vs. COMMISSIONER OF TAXES ASSAM

JUDGEMENT

(1.) This appeal arises out of judgment and order dated 6.7.94 passed by a learned Single Judge of this Court in Civil Rule No. 348/89.

(2.) The appellant is a Public Limited Company, incorporated under the Companies Act, 1956. The Company is engaged in the business of cultivation, manufacture and sale of tea. The company has two Tea Estates, namely, Bongapani Tea Estate and Namdang Tea Estate. Bongapani Tea Estate is admitted to be situated within the State of Assam. Nlamdang Tea Estate has two divisions, namely, (1) Namdang Division and (2) Namtok Division. The entire Namdang E(ivision is situated in the State of Assam. But it is alleged that so far as the Namdang Division is concerned, only an area of 738 B. 3 K. 1 L. is situated within the territory of the State of Assam and the remaining area of 2404 big has of that Division formed part of the erstwhile 'North Eastern Frontier Agency, 'NEFA, now Arunachal Pradesh. The appellant company used to pay the land revenue to the Government of Assam in respect of land measuring 738 Bighas 3 Kathas and 1 Lecha of land of Namtok Division situated within the State of Assam and also Agricultural Income-Tax on agricultural income derived from cultivation of tea growth on the said land. By virtue of North-Eastern Areas (Reorganisation) Act, 1971, the area comprised in NEFA became the Union Territory of Arunachal Pradesh and thereafter by the State of Arunachal Pradesh Act, 1986, the State of Arunachal Pradesh was established. That from 1979, the Deputy Commissioner, Dibrugarh sitarted to send Demand Notices, demanding payment of Land Revenue for 1011 Bighas 3 Kathas 18 Lechas of land in place of 738 Bighas 3 Kathas 1 Lecha of land of Namtok Division situated in Assam claiming arrears from 1st April, 1977. Thus, there was an additional area of 273 Bighas of land at Namtok Division claiming that this area was within the State of Assam on the basis of resettlement and survey made. The petitioner company paid land revenue in respect of the said additional land of 273 bighas under protest.

(3.) The basic facts are that the appellant filed petitions for quashing the impugned assessment order dated 24,11.82 (Annexure- 3) as passed by the Agricultural Income-Tax Officer levying Income-Tax on the income derived from 273 Bighas of land situated in Arunachal Pradesh and the subsequent orders dated 29.8,84 and 24.5.88 as passed toy the Assistant Commissioner of Taxes (Appeals) and Commissioner of Taxes, Assam respectively, filed as Annexure-IV and V to the petition and further praying for a direction to the respondents to refrain from levying and collecting Agricultural Income-Tax on income derived from tea grown of the aforesaid 273 bighas of land, which according to the appellant was situated in Arunachal Pradesh.