TaxTMI 
TaxTMI 
1983 (10) TMI 23
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....ission to compound its agricultural income-tax on an extent o 679-63 ordinary acres corresponding to 611-13 standards acres on payment of Rs. 40,070,63 under s. 65 of the Agricultural Income-tax Act by the Agricultural Income-tax Officer for the year 1969-70. During the assessment year 1970-71, the assessee, however, had filed return of income declaring a net loss of Rs. 30,630-35. The Agricultural Income-tax Officer finalised the assessment under S. 17(3) of the Act determining the net income at Rs. 86,245.77 after allowing a deduction of " the value of standing crops at the beginning of the year amounting to Rs. 1,76,290 " among others, by his order dated April 29, 1977. While perusing the records of assessment for the year 1970-71, the C....
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....urns of agricultural income and being assessed on the basis of such returns. It is because the assessee changed the basis of assessment for one year, the question in dispute has arisen. Learned counsel for the assessee submits that as per the method of accounting adopted by the company from the beginning, the value of standing crops at the end of the year is taken as the income of that year, that when the tax is levied on compounding basis for 1969-70, it covers the entire income for that year and that, therefore, any inclusion of the value of the standing crops in the beginning of the assessment year 1970-71 as income for that year will amount to double assessment of the value of the standing crops. He also submits that s. 19A of the Ac....
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....e total agricultural income submitted by any person for the previous year immediately preceding the year covered by an application for permission to compound under section 65, the value of any closing stock of agricultural produce for the said previous year has not been taken into account in computing the said total agricultural income in accordance with the method of accounting then employed by the assessee, the Agricultural Income-tax Officer may, if he grants such permission to compound, re-assess the total agricultural income of such person for that previous year after taking into account the value of the closing stock of such agricultural produce and the provisions of this Act shall, as far as may be, apply in relation to such reassess....
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....issioner, the system of accounting employed by the assessee is It cash " system and, therefore, whatever income is realised in cash by the sale of standing crops existing at the close of the preceding year 1969-70 could be assessed in the assessment year 1970-71. The notional value of the standing crops at the end of the assessment year 1969-70 and at the beginning of the assessment year 1970-71 has been fixed at Rs. 1,76,290 the assessee himself. The accounting period for the assessment year 1970-7 1, in this case, is from July 1, 1968, to June 30, 1969, and, therefore, the standing crops as on June 30, 1968, would have been harvested during the period between July 1, 1968, to June 30, 1969, falling within the assessment year 1970-71, and ....