Union Of India & Anr vs Belgachi Tea Company Ltd. & Ors

The Supreme Court upheld the High Court's decision regarding the assessment of agricultural income tax under the Bengal Agricultural Income Tax Act, 1944, and the Income Tax Act, 1961. It clarified that income derived from tea manufacturing should be assessed under the Income Tax Act, with 40% of the income taxable under the 1961 Act and the remaining 60% under the 1944 Act. The Court rejected the assessee's claim that all income should be assessed solely under the 1961 Act, affirming the dual taxation framework established in Tata Tea Ltd. v. State of West Bengal, 1988 (Supp) SCC 316.