1971 (2) TMI 8

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....ee, whether, on the facts and in the circumstances of the case, the Tribunal has been correct in finding that the Appellate Assistant Commissioner went wrong in holding that it was not open to the Agricultural Income-tax Officer to include the value of the 1,484 lbs. of pepper alleged to have been carried over to the subsequent year in the assessable income for the year in question ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the decision of the Supreme Court in Commissioner of Income-tax v. A. Krishnaswami Mudaliar, applied to the facts of the case on all fours ? " The assessee filed returns for the assessment year 1961-62 declaring a net income of Rs. 6,780.51. The Agricultural ....

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....gricultural Income-tax Act, 1955, when he has received the produce and not when he has sold, used or consumed it. Shah J. (as he then was), speaking for the court, said : " The expression 'income' in its normal connotation does not mean mere production or receipt of a commodity which may be converted into money. Income arises when the commodity is disposed of by sale, consumption or use in the manufacture or other processes carried on by the assessee qua that commodity. There is no reason to think that the expression 'income' in the Act has any other connotation. A tax on income whether agricultural or non-agricultural is, unless the Act provides otherwise, a tax on monetary return-actual or notional. " It is admitted in this case that th....