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TMI Blog1968 (8) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Kerala Agricultural Income-tax Appellate Tribunal under section 60(1) of the Agricultural Income-tax Act, 1950, on the application of the assessee : " Whether on the facts and circumstances of the case, depreciation and maintenance expenditure were not allowable in respect of all the buildings as claimed by the applicant instead of limiting them to buildings which were actually let out and from which rent was actually realised ? " The assessee is the Plantation Corporation of Kerala Ltd., which is a company formed for the purpose of carrying on agricultural activities. For the assessment year 1964-65 the assessee returned a net loss of Rs. 47,297. The assessee owns a number of buildings used for the occupation of its employees e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed under clause (1) of section 5. We shall quote these clauses and also clause (j) of section 5 : " The agricultural income of a person shall be computed after making the following deductions namely : . . . . . . (d) any expenses incurred in the previous year on repairs in respect of any capital asset which was purchased or constructed for the benefit of the land from which the agricultural income is derived ; ...... (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 ; ...... (l) in respect of depreciation of buildings, machinery, plant and furniture which are the property of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular year in which the deductions were sought, and that if there was no income in that year, the deductions were not admissible. But the Supreme Court overruled this contention and held that the assessee was entitled to the deductions, though there may be no income in that year. The learned counsel submitted that the same reasoning should apply in the case of deductions claimed under clauses (d) and (l) of section 5. We think that he is right. Section 12 of the Act provides for carrying forward of a loss in agricultural income in any year to the following year and for set off against the agricultural income of that year. The loss may occur when the expenditure exceeds the income derived and also when there is no income but only expe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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