Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | composite income agricultural income |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Income Tax Act, 1961: s. 80HHC - Composite income from sale of tea, grown and manufactured - Export of tea - Deduction under s. 80HHC - Held: Allowable after 60: 40 apportionment of income under Rule 8(1) - The said rule segregates agricultural income which is exempted income, from business income which is chargeable to tax - For that purpose, the ratio of 60 : 40 is applied - Therefore chargeability and computability is confined to only 40% of the income from tea which is taxable under Income Tax Act, 1961 - In view of this, assessee cannot claim s.80HHC(3)(a) deduction against the entire tea composite income - Moreover Deductions under Chapter VIA are deductions not from a particular head of income but from gross total income - Therefore, s. 80HHC is not part of provisions for computation of business income-Income Tax Rules, 1962 - r.8(1). s.10(1) - "agricultural income" - Power to make laws with respect to taxes on agricultural income - Held: Is on State Legislature under Article 246(1) of Constitution r.w. Entry 82 of List I in Seventh Schedule and Article 246(3) r.w. Entry 46 of List II in Seventh Schedule - Expression "agricultural income", means agricultural income as defined in Article 366(1) of Constitution for purpose of enactments relating to Indian Income-tax - Constitution of India, 1950 - Articles 246(1), (3), 366(1), Seventh Schedule List I Entry 82 and List II Entry 46. The question which arose for consideration in these appeals is whether Assessing Officer was right in holding that deduction under s.80HHC can be allowed only against part of the income from tea which was taxable under the Income Tax Act, 1961, namely, 40% of the income. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2007 INSC 1275 |
Petitioner | Commissioner Of Income Tax |
Respondent | Willamson Financial Services And Ors. |
SCR | [2007] 13 S.C.R. 376 |
Judgement Date | 2007-12-12 |
Case Number | 3803 |
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