1995 (4) TMI 23 - HC - Income Tax

Summary

Issues:
1. Disallowance of expenditures under "Nursery, Livestock maintenance, Banana culture operation, and Tractor expenses."

Nursery Expenses:
The assessee claimed Rs. 1,842 under "Nursery expenses." The Tribunal disallowed 50% of the claim, allowing relief of Rs. 921. The court upheld the Tribunal's decision, stating that the disallowance was reasonable considering the limited planting area. The court declined to interfere with the Tribunal's decision.

Livestock Maintenance:
The assessee claimed Rs. 4,000 for "Livestock maintenance." The Tribunal disallowed the entire claim, noting the use of chemical manure and doubting the genuineness of the natural manure claim. The court upheld the Tribunal's decision, citing lack of evidence and genuineness in the claim.

Banana Culture Operation:
The assessee claimed Rs. 7,000 for "Banana culture operation." The Tribunal allowed Rs. 3,000, disallowing 50% of the claim. The court agreed with the Tribunal, considering the virus disease affecting the plantations and the purpose of banana trees providing shade to coffee bushes. The court upheld the 50% disallowance.

Tractor Expenses:
The assessee claimed Rs. 10,390 for "Tractor expenses" and Rs. 283 for "Depreciation on tractor." The Tribunal disallowed 1/4th of the expenses, restricting it to Rs. 5,390. The court found the disallowance reasonable, considering the usage of the tractor for plantations. The court upheld the Tribunal's decision and remanded the depreciation claim back to the Assessing Officer.

In conclusion, the court partly allowed the tax case (revision) without costs, upholding the Tribunal's decisions on the disallowance of expenditures under various heads, except for the remanded depreciation claim related to tractor expenses.