9911796707
TMI Blog1972 (4) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ale value of albezia trees of Rs. 6,080 and the sale value of malavembu trees of Rs. 3,970 are includible as taxable receipts of the assessee along with his other agricultural income. The assessee's contention was that these trees have been specially planted by him only with a view to give shade to the rubber plants and that the object of planting these trees was not with a view to exploit the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would make the administration of the Act difficult and the computation of income allowing only those expenses attributable to the growth of trees other than those trees which are to be treated as capital assets almost impossible of determination. It is precisely for this reason that all expenses incurred in connection with the agricultural operations are treated as allowable expenditure and it fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, their Lordships of the Supreme Court had to consider a question similar to the one arising in this case. That case arose under the provisions of the Kerala Agricultural Income-tax Act, 1950. There a company, which carried on business of manufacturing and selling tea, grew grevelia trees in its tea estate solely for the purpose of affording shade for the tea bushes. When the grevelia trees be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s derived therefrom by sale as firewood would not constitute agricultural income under the Act."
In view of the above decision of the Supreme Court which was rendered subsequent to the decision of the Tribunal, the order of the Tribunal has to be set aside. The question referred to us is, therefore, answered in favour of the assessee. There will, however, be no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
|
