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1942 Supreme(Cal) 31
CALCUTTA HIGH COURT
Derbyshire, C.J, Panckridge, J.
In Re: Babu Brojendra Kishore Roy Choudhury - Appellant
Decided On : 19-02-1942
Important Points
Subject
Taxation Law - Income Tax
Headnote
accrued due in the previous agricultural year - Interpretation of Section 7, Assam Agricultural Income Tax Act of 1939
Fact of the Case:
The court was asked to interpret whether the phrase 'accrued due in the previous agricultural year' in Clause (c) of Section 7 includes arrears as well as current dues under the Assam Agricultural Income Tax Act of 1939.
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, based on the opinion of the member of the Board of Agricultural Income Tax for Assam and the assesses' representative.
Issues: Interpretation of the phrase 'accrued due in the previous agricultural year' in Clause (c) of Section 7
Ratio Decidendi: The court's decision was influenced by the opinions of the member of the Board of Agricultural Income Tax for Assam and the assesses' representative, concluding that the phrase refers only to the current demand of rent for that year.
Final Decision: The court answered the question in the manner indicated, with no order made 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 arrears as well as current dues? Section 7, 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.
2. 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.
3. Dr. Sen Gupta who has appeared for the assesses 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 is answered in the manner I have indicated. No order is made as to costs. The same answer is given in Eeference No. 4A of 1941.
Panckridge, J.
4. I agree.
