9911796707
TMI Blog1963 (8) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the assessee under section 7 of the Bihar Agricultural Income-tax Act in the circumstances of this case?" On behalf of the Commissioner of Agricultural Income-tax the learned Government Pleader contended that the Board of Revenue was erroneous in law in allowing the claim of the assessee for deducting printing and stationery charges amounting to ₹ 3,154-6-9 from its gross income under section 7 of the Bihar Agricultural Income-tax Act. It was contended that this claim does not fall within the language of the items of deduction specified in section 7, sub-section (2), of the statute and, therefore, the assessee is not entitled to claim this exemption for purposes of assessment. The opposite view-point was put forward by lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax [1959] 37 I.T.R. 1; [1960] 1 S.C.R. 185, that the enumeration of deductions under section 10(2) of the Indian Income-tax Act, 1922, was not exhaustive, and under section 10(1) of the Income-tax Act a deduction may be allowed if the amount was an expenditure incidental to the business of the assessee and having regard to the accepted commercial practice and trading principles. In our opinion the principle laid down by the Supreme Court in this case cannot be applied to the present case. The language of section 7 of the Bihar Agricultural Income-tax Act is markedly different from the language of sections 10(1) and 10(2) of the Indian Income-tax Act, 1922. Section 7(1) of the Agricultural Income-tax Act states as follows: &q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required for the purpose of such cultivation and for transporting the crop to market; (f) any tax, cess or rate paid under any Bihar Act on the cultivation or sale of the crop from which such agricultural income is derived; (g)(i) any expense incurred on the maintenance of any irrigation or protective work constructed exclusively for the benefit of the land from which such agricultural income is derived : Explanation.--'Maintenance' includes current repairs and includes also in the case of protective dykes and embankments all such work as may be necessary from year to year for repairing any damage or destruction caused by flood or other natural causes; (ii) any expense incurred exclusively on the maintenance of any capital a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such mortgage or charge as a borrower under section 5, 6 and 7 of the Bihar Money-lenders (Regulation of Transactions) Act, 1939 (Bihar Act VII of 1939); and (h) such other deductions as may be prescribed." Section 3 deals with charge of agricultural income-tax and states that "agricultural income-tax shall be charged for each financial year in accordance with, and subject to the provisions of, this Act on the total agricultural income of the previous year of every person." The expression "total agricultural income" is defined in section 2(t) of the Act to mean "the aggregate of the amounts of agricultural income of the different classes specified in sections 6 and 7 as determined respectively in the manner ..... X X X X Extracts X X X X X X X X Extracts X X X X
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