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Commissioner of Agricultural Income-tax Vs. Kartikolam and Alathur Estates Limited and Plantation Corporation of Kerala - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtKerala High Court
Decided On
Case NumberI.T.R. Nos. 50 and 108 of 1977
Judge
Reported in[1988]169ITR393(Ker)
ActsKerala Agricultural Income Tax Act, 1950 - Sections 5
AppellantCommissioner of Agricultural Income-tax
RespondentKartikolam and Alathur Estates Limited and Plantation Corporation of Kerala
Appellant AdvocateGovernment Pleader
Respondent Advocate T.L. Viswanatha Iyer,; P.S. Narayanan,; K.S. Menon,
Cases ReferredCommr. of Agrl. I.T. v. Malayalam Plantations Ltd.
Excerpt:
- .....of certain items of expenditure claimed by the assessee as deduction under section 5(j) of the kerala agricultural income-tax act, 1950. that section reads :'5. computation of agricultural income.--the agricultural income of a person shall be computed after making the following deductions, namely:--... (j) any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively for the purpose of deriving the agricultural income.' 2. the expenses sought to be deducted, what may be broadly described, are legal and audit expenses incurred by the assessee and claimed as having been incurred for the purpose of deriving the agricultural income. in i.t.r. no. 50 of 1977, a sum of rs. 1,894 was claimed as remuneration.....
Judgment:

V.P. Gopalan Nambiyar, C.J.

1. The question raised in these references relates to the deductibility of certain items of expenditure claimed by the assessee as deduction under Section 5(j) of the Kerala Agricultural Income-tax Act, 1950. That section reads :

'5. Computation of agricultural income.--The agricultural income of a person shall be computed after making the following deductions, namely:--...

(j) any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively for the purpose of deriving the agricultural income.'

2. The expenses sought to be deducted, what may be broadly described, are legal and audit expenses incurred by the assessee and claimed as having been incurred for the purpose of deriving the agricultural income. In I.T.R. No. 50 of 1977, a sum of Rs. 1,894 was claimed as remuneration paid to the auditors. In I.T.R. No. 108 of 1977, a sum of Rs. 7,925.08 was claimed as legal charges. The scope of Section 5(j) of the Act fell for examination before a Division Bench of this court in Commr. of Agrl. I.T. v. Malayalam Plantations Ltd. : [1978]115ITR624(Ker) . The decision was referred to and followed in I.T.R. No. 107 of 1977 (supra p. 390). In the light of the principle laid down by the above decisions, we have no doubt that the amounts claimed in these cases are deductible under Section 5(j) of the Act. The questions formulated for our opinion in these references are accordingly answered in the affirmative, that is, in favour of the assessee and against the Revenue. There will be no order as to costs.

3. A copy of this judgment under the signature of the Registrar and the seal of this court will be communicated to the Kerala Agricultural Income-tax Appellate Tribunal, Trivandrum, as required by law.


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