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1942 Supreme(Cal) 51
CALCUTTA HIGH COURT
Derbyshire, C.J, Panckridge, J.
IN THE MATTER OF : BABU BROJENDRA KISHORE ROY CHAUDHURY. @RESPONDENT - Appellant
Cases stated under Section 28 (2) of the
Decided On : 19-02-1942
Important Points
Subject
Interpretation of Statute - Tax Law
Headnote
accrued due in the previous agricultural year - Interpretation of Section 7 of the Assam Agricultural income tax Act of 1939 - The court held that the phrase 'rent which accrued due in the previous agricultural year' refers only to the current demand of rent for that year.
Fact of the Case:
The court was asked to interpret whether the phrase 'accrued due in the previous agricultural year' in Section 7 of the Assam Agricultural income tax Act of 1939 includes arrear as well as current dues.
Finding of the Court:
The court found that the phrase 'rent which accrued due in the previous agricultural year' refers only to the current demand of rent for that year.
Issues: Interpretation of the phrase 'accrued due in the previous agricultural year' in Section 7 of the Assam Agricultural income tax Act of 1939.
Ratio Decidendi: The court held that the phrase 'rent which accrued due in the previous agricultural year' refers only to the current demand of rent for that year.
Final Decision: The court answered the question in the manner indicated and made no order as to costs.
JUDGMENT
DERBYSHIRE, C.J. - The facts of the case are set out in the Reference to this Court.
The question asked was - Does the phrase "accrued due in the previous agricultural year" in clause (c) of Section 7 include arrear as well as current dues ?
Section 7 of the Assam Agricultural income tax Act of 1939 provides :
"The agricultural income mentioned in sub-clause (1) of clause (a) of Section 2 shall be deemed to be the sum realised in the previous agricultural year on account of agricultural income mentioned in the said sub-clause (1) after making the following deductions : * * * *
(c) a sum equal to 15 per cent. of the total amount of the rent which accrued due in the previous agricultural year, in respect of the charges for collecting the same".
The member of the Board of Agricultural income tax for Assam, Mr. Higgins, has answered the question as follows :
"I would submit that the answer to the question should be that the phrase rent which accrued due in the previous agricultural year refers only to the current demand of rent for that year".
Dr. Sen Gupta who has appeared for the assessee says that he is unable to contend that that answer is incorrect. I agree with Dr. Sen Gupta and, in my opinion, the answer which the Member of the Board of Agricultural income tax for Assam has given is correct and that the phrase "rent which accrued due in the previous agricultural year" refers only to the current demand of rent for that year.
Another question was asked, but that does not arise because of the answer which has been given to the question already discussed.
The result is that the question which has been asked in answered in the manner I have indicated.
No order is made as to costs.
The same answer is given in Reference No. 4A of 1941.
PANCKRIDGE, J. - I agree.
Reference answered accordingly.
