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TMI Blog2007 (10) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... tural Income-tax Act. For the assessment year 1994-95, annexure A order dated February 10, 1997, was passed by the Inspecting Assistant Commissioner, Ernakulam. Loss was occasioned to the petitioner due to damage to the stock of rubber latex and a claim for insurance was made in November, 1992. The insurance amount was received during the period of the assessment year 1994-95. The contention raise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce amount received would not qualify as agricultural income for the purpose of assessment under the Agricultural Income-tax Act ?" 4. Sri. Anil D. Nair, learned counsel appearing for the petitioner, contends that under section 4(2) (ii) of the Kerala Agricultural Income-tax Act, 1991, hereinafter referred to as "the Act", the insurance claim received during the year 1994-95 in respect of the loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he agricultural income received in the previous year. As per clause (ii) of sub-section (2) of section 4, if in respect of any loss, expenditure or liability incurred by the assessee, any amount either in cash or in any other manner is received by the assessee during the previous year, it would constitute an agricultural income of the previous year. By the deeming fiction, the amount received by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a loss which is compensated by payment of insurance amount. That there was loss is not disputed. That there was payment of compensation is also not disputed. The amount paid as compensation for insurance coverage cannot but be treated as agricultural income under section 4(2) (ii) of the Act. The contentions raised by the petitioner are devoid of merits and they are accordingly rejected. The qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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