JUDGMENT

Sen, J.-The assessment years in this group of appeals (C.A.No. 6636/83, 6637/83, 6639/83, 6640/83 & 175-77/85) are 1962-63 to 1967-68. The assessee company, Thiru Arooran Sugar Ltd., is a manufacturer of sugar which purchases sugarcane from the market for crushing. It also has its own cane fields where it cultivates sugarcane which is entirely consumed by its factory. Since the profits made by the assessee from the sale of sugar arises out of agricultural activities as well as the manufacturing activities, the income earned by the assessee has to be divided into two parts. No tax is leviable under the Income Tax Act on agricultural income but the profit generated by the non-agricultural activities is liable to be taxed under the Act. There is no dispute that the income attributable to the agricultural activities must be excluded from the income earned by the assessee from the sale of sugar. But the problem is of computation of such income.

2. Section 10(1) of the Income-tax Act lays down that the agricultural income shall not be taken into computation of the total income of a previous year of any person under the Income-tax Act, 1961. Section 295 of the Act which empowers t