1993 (10) TMI 29 - HC - Income Tax

Summary

Issues involved: Assessment of agricultural income for exemption u/s 4 of the Agricultural Income-tax Act.

Summary:
The High Court of Kerala addressed the issue of assessing agricultural income for exemption u/s 4 of the Agricultural Income-tax Act in two revisions arising from a common order of the Agricultural Income-tax Appellate Tribunal. The revision petitioner, a religious entity, claimed total exemption of agricultural income for the assessment years 1979-80 and 1980-81 on the grounds of expenditure for religious and charitable purposes. However, the assessing authority found lack of separate accounts to ascertain the amount spent for these purposes, leading to an assessment based on apportioning income. The Appellate Assistant Commissioner modified the assessments, but the Tribunal confirmed the method of apportionment. The petitioner contended that the entire income was applied for religious and charitable purposes, citing a decision by the Allahabad High Court. However, the Tribunal found no separate or verifiable accounts to support this claim, leading to the dismissal of the revision cases by the High Court.

In conclusion, the High Court dismissed both tax revision cases based on the lack of separate and verifiable accounts to ascertain the agricultural income applied for religious and charitable purposes, thereby upholding the Tribunal's decision on apportionment of expenses.