| Case ID |
1f410052-9d6a-483e-aca0-77669d7712e3 |
| Body |
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| Case Number |
IT REFERENCE NOS. 53 TO 55 OF 1980 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the assessee was entitled to total exemption in respect of the value of the leaves and buds plucked from tea bushes used as raw material for the manufacture of tea. The Tribunal was directed to reconsider the nature of the exemption claimed by the assessee and to determine the actual value of such leaves and buds. The decision emphasized that if the claimed amounts did not include the value of any leaves other than those plucked, the denial of exemption to the extent of 80 percent was unjustified. |
| Summary |
In the case of IT Reference Nos. 53 to 55 of 1980, the Kerala High Court addressed the issue of exemption under the Wealth-tax Act, 1957 concerning the value of leaves and buds plucked from tea bushes. The assessee, a partner in a firm owning tea estates, claimed exemption for the total value of the raw materials used in tea production. The Income Tax Officer (ITO) accepted only 20% of the claim, leading to an appeal. The court found that the exemption claimed did not include any non-raw material leaves, thus ruling that the full value should be exempt. This decision is relevant for those involved in agricultural taxation, particularly in the tea industry. It underscores the importance of understanding what constitutes raw material in tax assessments and the potential for full exemption when claiming deductions under the Wealth-tax Act. Keywords such as 'wealth tax exemption', 'tea industry taxation', and 'raw material deductions' are pertinent for those researching agricultural tax law. |
| Court |
Kerala High Court
|
| Entities Involved |
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| Judges |
E.K. Joseph,
T. Kochu Thommen,
K.P. Radhakrishna Menon
|
| Lawyers |
Sivarajan for the Applicant,
P.K.R. Menon for the Respondent
|
| Petitioners |
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| Respondents |
Commissioner of Wealth Tax
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| Citations |
1985 SLD 1310,
(1985) 155 ITR 507
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| Other Citations |
Not available
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| Laws Involved |
Wealth-tax Act, 1957
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| Sections |
5(1)(viiia)
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