TRAVANCORE RUBBER & TEA CO. LTD. & ANR. v. STATE OF KERALA & ANR.
Citation: [1963] SUPP. 1 S.C.R. 836; 1962 INSC 307
Court: Supreme Court of India
Bench: S.K. DAS , J.L. KAPUR, A.K. SARKAR, M. HIDAYATULLAH, RAGHUBAR DAYAL
Judgment date:
Case summary
1962 INSC 307. Supreme Court of India judgment dated 1962-11-01. TRAVANCORE RUBBER & TEA CO. LTD. & ANR. v. STATE OF KERALA & ANR. Read the judgment and...
Judgment text
Agricultural Income-tax Act added by the Amendment Act does not cover the expenses incurred in the upkeep or maintenance of immature tea plants from which no income has been derived during an account· ing year and that the agricultural inrnme derived from tea plantations will be computed in accordance with the provisious of the Income· tax Act and the Income-tax Rules. We order that a writ be issued to the respondents restraining them, their agents and servants from enforcing or acting upon the provisions of Explantation 2 to s. 5 of the Agricultural Income-tax Act against the Karimtharuvi Tea Estate Ltd. , Kottayam, viz. , petitioner No. J. We direct the respondents to pay the costs of petitioner No. 1, on eset. Pet·i#o11s allowed in part. TRAV ANCORE RUBBER & TEA CO. LTD. & ANR. v. STATE OF KERALA & ANR. (S. K. DAS, J. L. KAPUR, A. K. SARKAR, M. HIDAYATULLAH and RAGHUBAB- DAYAL, JJ.
) Agricultural Income Tax-Rubber Plantation-Computation of agricultural income-Deductions-Statute disallowing expenditure on immature plants-Validity of-If discriminatory- Agricultural Income Tax (Amendment) Act, 1961 (Ker. IX of 1961), s. 2-Constitution of India, Art. 14. Under the Agricultural Income Tax Act, J 950, agricultural income from rubber plantations was to be computed in the same manner as ·under the Indian Income-tax Act, 1922. In December 1960, the Supreme Court held that the petitioners were entitled to deduct the expenses incurred in the upkeep and maintenance of itnn1ature rubber plants in the assessment of their agricultural income under the Agricultural Income Tax Act. Thereafter, by the Agricultural Income Tax (Amendment) Act, 1961 an Explanation 2 was added to·;.
5 of the 01·i~inal Act which provided that no deduction shall be allowed of any expenditure laid out or expended for the cultivation, upkeep or maintenance of immature plants from which no agricultural income was derived during the previous year. The petitioners contended that Explanation 2 was ultra vires and discriminatory. Hel,d, that Explanation 2 to s. 5 was validly enacted. The State Legislature had full power to tax "agricultural income" as defined in the Agricultural Income Tax Act, which definition was in conformity with the definition in the Indian Income-tax Act, 1922. It was for the State Legislature to provide for such deductions from such income as it considered fit. The word "income" had a very wide meaning. The word "income" in Entry 46, List lI.
Seventh Schedule of the Constitution which empowers a State Legislature to legislate with respect to taxes on agricultural income could not be confined to gross receipts after deduction of necessary expenses incurred to get those receipts. Travancore Rubber & Tea Co. Ltd. v. Commissioner of Agricultural Income-tax, Kerala, [1961] 3 S. C. R. 279 and Navinchandra Mafatlal v. Commissioner of Income-tax, Bombay, (1955] I S. C. R. 829, referred to. Hel,d, further, that Explanation 2 to s. 5 was not discriminatory and did not contravene Art. 14. Though Explanation 2 was applicable to rubber plantations and not to tea plantations, the distinction was based upon the special ·provisions of the Income-tax Act and the rules made thereunder. The income derive from the sale of tea was partly derived from land by agriculture and partly from business. Such is not the case with income derived from sale of rubber. The Karimtharuvi Tea Estates Ltd. , Kottayam v. State of Kerala, [1963] Supp. I S. C. R.
823, referred to. ORIGINAL juRJSDICTION: Petitions Nos. 237 to 239 of 61. Petition under Art. 32 of the Constitution of India for enforcement of Fundamental Rights. S. T. Desai, J. B. Dadachanji, 0. C. Mathur, p. IJ. d Ravindar Narain, for the petitioners. ' ' . . A. V. Viswanathr1 Sristri and V. A . 8. illnhainmed, for the respondents. . 1962. November l. The . Judgment of' the Court was delivered by R. \(11/GBAR D,1 ¥AL, . J. -Thc Travancore Rubber and T"a Cu .. Ltd. , hereinafter clkd the company, and one of its dirrctors and members, have filed these petitions praying for a of getting those rrceipts and that such had been the concept of the Constitution makers when they used the word 'income' in Entry No. 82 of List I and Entry >lo. 4fi of List IT, of the Seventh Schedule to the Constitution. In support of this c~mt~ntion referen. ce was ma~e to the legislative prac-t'.
ce m the law of mcomc-tax m England, to the dictionary meaning of the word 'income' and to certain meanings mentioned in Strond's Judicial Dictionary and 'Words & Phrases' by Burrows. vVc do not consider it nec~ssary to deal with this contention ~t length as this Court had occasion to consider thi n with costs, one set. Petition8 dinm:ssed. /\NAN f PRASAD LAKSHMINIV AS GENERIWAL 1), ST ATE OF ANDHRA PRADESH AND OTHERS (With connected Petition) (B. P. SINHA, C. ]. , P. B. GA.! ENJJRAGAJ>KAn, K. N. '"' ANCH(JO, K. c. D. \S GUPTA and]. C. SHAH, . JJ. ) Religiow; Public Trust-Regisl<at:on-Notice on tra8tee~ F'ailure of trustee to app~a. r-Orfkr of remfJval, 1f ultra v1res- 1 Constitutional t'alidity of cnactu1,fnt-Trust in one ,')taie-l)roperty in unother-l'enue of regi8frat/on-H11de1«1hol liJndow-mr. nts Regulation, 1. 940, ss. 3, 9.
'fhe appellant, who was also the petitioner in the \Vrit petition, clairned to be the sole hereditary trustee and mut\valli of the ancient temple of Shri Sitararn Maharaj i:1 Hyderabad. For the n1aintenance of that temple certain village:; in 13e-rar had beed granted by the N1zam. The appellant's father had g-Ot the temple registered as a public trust nnder s. 7(1) uf the Madhya Pradesh Public Trusts Act, 1951, in June, J9:i:i.
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