TaxTMI 
TaxTMI 
1991 (9) TMI 27
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....r called " the Act " ). After considering the objections of the assessee, the Agricultural Income-tax Officer proceeded to assess 60 per cent. of the total salary and interest received by the assessee from the firm. The assessees questioned in appeal only the inclusion of the interest received from the firm on the ground that the entire interest had been assessed to tax by the Central income-tax authorities. The appellate authority confirmed the assessment made by the Agricultural Income-tax Officer. On further appeal, the Tribunal rejected the plea of the petitioner that there is any subtle distinction between salary and interest due from the firm. Accordingly, the assessment on 60 per cent. of the interest was confirmed by the Tribunal. ....
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....me derived from the tea grown and manufactured in the State of Tamil Nadu after allowing the deductions allowed by this Act, this assessment being subject to revision after the income for the year has been determined for the purpose of the Indian Income-tax Act, 1922 (Central Act XI of 1922). Therefore, it is contended that what is left as unassessed under the Income-tax Act alone can be brought to tax under the Act. In this case, it is contended that the entire income by way of interest had been assessed to tax under the Central Income-tax Act. (3) The receipt of interest from the firm does not have the characteristic of agricultural income within the meaning of section 2(a) of the Act. In CIT. v R. M. Chidambaram Pillai [1977] 10....
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....ured by the seller is to be computed under rule 24 as if it were income derived from business in accordance with the provisions of section 10 of the Indian Income-tax Act. The Explanation to section 2(a)(2) of the Kerala Act adopts this rule of computation. Of the income so computed, 40 per cent. is to be treated as income liable to income-tax and the other 60 per cent. only is deemed to be agricultural income within the meaning of that expression in the Income-tax Act. The power of the State Legislature to make a law in respect of taxes on agricultural income arising from tea plantations is limited to legislating with respect to the agricultural income so determined. The Legislature cannot add to the amount of the agricultural income so de....
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....receipt of interest from the firm. We do not think that it is necessary to decide the question whether the interest paid to the partner by the partnership firm bears the same character as salary paid to a partner. While, according to the Revenue, both interest and salary bear the same characteristic, according to the assessee, they are totally different from each other. We feel that it is sufficient to decide the case only on the second point raised by counsel for the petitioners, based on rule 7 of the Tamil Nadu Agricultural Income-tax Rules, 1955, quoted above. The fact that the entire interest had been brought to tax under the Central Income-tax Act cannot be disputed by the Revenue. In fact, to make this factual position clear, we call....