1972 (9) TMI 50

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....a common assessee. In this case we are concerned with the assessment under the Madras Agricultural Income-tax Act, 1955 (hereinafter to be referred to as the Act). The relevant assessment years are 1955-56 and 1956-57, the previous years ending on March 31, 1954, and March 31, 1955. The assessee was maintaining his accounts according to the mercantile system. The only question in dispute in this c....

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....eal to this Court. The point in issue in this case is, in our opinion, concluded by two decisions of this court, namely, State of Kerala v. Bhavani Tea Produce Co. Ltd. and S. S. Rajalinga Raja v. State of Madras. These decisions have laid down that in the application of the Act what is relevant is the agricultural income realised during the relevant previous year, the question as to when the c....

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....Commissioner as well as the Tribunal while making the assessment for the assessment year 1955-56 not only took into consideration the opening stock on April 1, 1954, but also the closing stock on March 31, 1955. This, according to him, is wholly impermissible on the basis of the ratio of the decisions of this court. This contention appears to be correct. From a reading of the order of assessment m....

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....ciples. The principle laid down by this court in the aforementioned two decisions is that the only think that is relevant for the assessment in the case of an asseesee's maintaining his accounts on the mercantile system is the sales of coffee effected by him during the previous year relevant to the assessment year and in the case of those who are maintaining accounts on the basis of cash system....