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Commissioner of Agricultural Income-tax Vs. S. Bhaskaran - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtKerala High Court
Decided On
Case NumberI.T.R. Nos. 109 and 125 of 1977
Judge
Reported in[1988]169ITR395(Ker)
ActsKerala Agricultural Income Tax Act, 1950 - Sections 5
AppellantCommissioner of Agricultural Income-tax;nellithanam Rubber Produce Company Limited
RespondentS. Bhaskaran;state of Kerala
Appellant Advocate Party in person in I.T.Ref. No. 109 of 1977,; T.L. Viswanatha Iyer,;
Respondent Advocate Government Pleader, for State
Excerpt:
- .....of the case, the tribunal was justified in allowing the claims of the assessee towards legal expenses, travelling expenses for appeal and expenses relating to strike amounting to rs. 200, rs. 37'30 and rs. 4,044.24, respectively, the presumption being that section 5(j) of the kerala agrl. income-tax act, 1950, corresponds to section 10(2)(xv) of the indian income-tax act, 1922?'3. i.t.r. no. 125 of 1977 :'whether, on the facts and in the circumstances of the case, the expenses incurred in connection with taxation matters are an allowable deduction in computing the agricultural income under section 5 of the kerala agrl. income-tax act, 1950 ?'4. the question of the deductibility of legal and audit expenses was examined by us in the division bench ruling in commissioner of.....
Judgment:

V.P. Gopalan Nambiyar, C.J.

1. These references are at the instance of the Revenue under Section 60 of the Kerala Agricultural Income-taxAct, 1950. The questions of law referred for our determination are the same, the figures alone being different. The questions referred are :

2. I.T.R. No. 109 of 1977.:

'Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing the claims of the assessee towards legal expenses, travelling expenses for appeal and expenses relating to strike amounting to Rs. 200, Rs. 37'30 and Rs. 4,044.24, respectively, the presumption being that Section 5(j) of the Kerala Agrl. Income-tax Act, 1950, corresponds to Section 10(2)(xv) of the Indian Income-tax Act, 1922?'

3. I.T.R. No. 125 of 1977 :

'Whether, on the facts and in the circumstances of the case, the expenses incurred in connection with taxation matters are an allowable deduction in computing the agricultural income under Section 5 of the Kerala Agrl. Income-tax Act, 1950 ?'

4. The question of the deductibility of legal and audit expenses was examined by us in the Division Bench ruling in Commissioner of Agricultural Income-tax v. Malayalam Plantations Ltd. : [1978]115ITR624(Ker) . The decision was followed in I.T.R. No. 107 of 1977 (supra p. 390) and again in I.T.Rs. Nos. 50 and 108 of 1977 (supra p. 393). Following these decisions, we answer these questions in favour of the assessee and against the Revenue. There will be no order as to costs.

5. A copy of this judgment under the seal of the court and the signature of the Registrar will be communicated to the Tribunal as required by law.


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