1980 (12) TMI 93

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....essment years 1974-75 and 1975-76. The assessee has considerable agricultural holdings to the extent of almost 75 acres. He does not have any other business and other income is from dividends, etc. There is very short point involved in the present appeals and that relates to the question as to whether exemption is available under section 5(1)(ix) in respect of the value of a lathe machine. The val....

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....der the provisions of section 5(1)(ix), the lathe was an implement or equipment used for cultivation or raising of agricultural produce, etc., and, therefore, its value was exempt. The learned departmental representative, on the other hand, opposed this plea. 4. The learned counsel for the assessee placed reliance on the decision of the Calcutta High Court in CWT v. Anglo-American Direct Tea Tr....

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....ered the rival submissions. In Anglo-American Direct Tea Trading Co. Ltd., the High Court restored to the Tribunal for examination whether, on facts, the electrical machinery, grinding mills, etc., were used for raising agricultural produce as this aspect had not been gone into earlier. The Court only held that such items could also be tools and implements, but the Court cautioned that, that alone....

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....which may include modern scientific and mechanised implements like transformers or switch-gear, may qualify for exemption, if used for raising agricultural produce. But implements which are collaterally or partly used to energise agricultural tools or implements will not so qualify." 8. A tool or implement even if sophisticated would qualify for exemption if used for raising agricultural produc....