https://www.taxtmi.com/caselaws?id=28126 Deletion of the Explanation to section 2(a)(2) of the Kerala Agricultural Income-tax Act, 1950 did not enlarge State legislative competence to tax the entire income from tea grown and manufactured by the assessee. Agricultural income remains limited by article 366(1) and the Central Act and Rules; under rule 8 of the Income-tax Rules, 1962, only 40% of tea income is treated as taxable business income under the Central Act, with the balance 60% retaining agricultural character. The omission therefore could not authorise assessment of the whole tea income as agricultural income, and the State could tax only the portion recognised under the Central scheme. en-us Thu, 05 Apr 1984 00:00:00 +0530 Fri, 19 Feb 2010 11:47:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28126 Deletion of the Explanation to section 2(a)(2) of the Kerala Agricultural Income-tax Act, 1950 did not enlarge State legislative competence to tax the entire income from tea grown and manufactured by the assessee. Agricultural income remains limited by article 366(1) and the Central Act and Rules; under rule 8 of the Income-tax Rules, 1962, only 40% of tea income is treated as taxable business income under the Central Act, with the balance 60% retaining agricultural character. The omission therefore could not authorise assessment of the whole tea income as agricultural income, and the State could tax only the portion recognised under the Central scheme. Case-Laws Income Tax Thu, 05 Apr 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28126