Oil Palm India Ltd. Vs DCIT (Kerala High Court)
Facts- The appellant undertakes Oil Palm cultivation and manufacture and production of crude palm oil. A controversy arose between the assessee and the revenue, with the revenue implementing Rule 7 of the Central Income Tax Rules, 1962 providing for assessment of income which is partly agricultural and partly business income.
The main ground of assessee in the subject appeals is that the assessee has paid tax under Act 1991 on the whole of its income. The tax paid under 1991 Act is paid as a permissible deduction under Section 43B of the Act, therefore is entitled to deduction in computation of net total income.
Conclusion- Agricultural income is excluded from the scope of Section 10(1) of Central Act. Therefore, agricultural income does not form part of computation under Section 14 of the Act, 1991. Further, the deduction is envisaged for the purpose of ascertaining the net income of the assessee under different heads. The agricultural income is excluded and tappering into admissible tax, a deduction would again be inconsistent with Sections 10,14 and 43B of the Act.
Clause-B of Section 43B deals with the tax payable by the assessee. The agricultural income tax paid for the apportioned agricultural income cannot overlap into the business income as tax payable by the assessee for earning business income.
FULL TEXT OF THE JUDGMENT/ORDER OF KERALA HIGH COURT
Heard Mr. Anil D. Nair and Mr. PKR Menon learned counsel for parties.
2. M/s Oil Palm India Ltd., Kottayam/Assessee is the appellant. The Deputy Commissioner of Income Tax, Kottayam/Revenue is the respondent. The assessee, being aggrieved by the common order dated 1.12.2017 in ITA No.111/Coch/2014 and four other appeals, filed the subject appeals before this Court under Section 260(A) of the Income Tax Act, 1961 (for short “Central Act”). The details of the assessment year etc. till the filing of the appeals in this Court are stated hereunder:
