S. S. RAJALINGA RAJA vs STATE OF MADRAS

The Supreme Court held that under Section 3 of the Madras Plantations Agricultural Income Tax Act, 1955, agricultural income is charged to tax when the commodity is disposed of, not merely when it is produced or received. The Court clarified that the income arises from the sale, consumption, or use of the agricultural produce, and not from its mere existence. The appeal was dismissed as the appellant failed to provide evidence that the crop sold related to the years for which he sought to compound tax, affirming the High Court's decision.