9911796707
TMI Blog2002 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... imited company, derives agricultural income from its plantation and also income from investments in shares and deposits. For the assessment year 1993-94, the petitioner company filed a return under the Tamil Nadu Agricultural Income-tax Act, disclosing a net income of Rs. 1,10,323. The Agricultural Income-tax Officer, while completing the assessment, after disallowing certain expenses finally determined the net assessable income at Rs. 32,22,175. On appeal, the Assistant Commissioner allowed the appeal in part and while rejecting the petitioner's claim for deduction of expenditure pertaining to purchase of drums, he remanded the issue to the assessing authority to determine the value of the raw rubber as according to him a sum of Rs. 2,13,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estock is necessary for obtaining natural manure for the crops and further the milk of the livestock was used in the workers canteen and hence the expenses towards the maintenance of livestock had to be allowed since such expenses have direct nexus with the agricultural operation of the estate. The fact-finding authority has found that the petitioner company was having 1,320 acres of rubber estate and the company could not get the required quantity of natural manure from the livestock, the petitioner company maintained and they further found that there was no chance of utilizing the natural manure to the rubber crop. For rubber crops chemical manure only is being used not only in the petitioner's estate but also in several other rubber esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment company. The Agricultural Income-tax Officer apportioned the expenses relating to the two companies and allowed 1/3rd of the expenses as expenses incurred for the purpose of the petitioner company. The Assessing Officer has given reasons for disallowing the 2/3rds of expenses to the effect that the common expenses represented the salaries and other allowances incurred for the staff at the head office at Madras. During the previous assessment year 1992-93 the total expenses for the head office at Madras were Rs. 21,05,970 and out of that total amount, the petitioner company themselves claimed 32.5% of the expenses towards the expenses incurred for the petitioner company. The Assessing Officer followed the very same ratio for the pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the Tamil Nadu Agricultural Income-tax Act not engaged in tea or coffee plantation so as to consider the petitioner as assessable under the agricultural income-tax as well as the Indian Income-tax Act so as to invoke rule 9 of the Tamil Nadu Agricultural Income-tax Act. The decisions which were cited in CIT v. Manjushree Plantations Ltd. [1981] 130 ITR 908 (Mad) and Consolidated Coffee Ltd. v. State of Karnataka [2001] 248 ITR 432 (SC) were all rendered in respect of the assessees, who were liable to be assessed under the Agricultural Income-tax Act as well as the Central Income-tax Act in respect of the income derived from tea and coffee plantation. It is an admitted fact that the expenses had been incurred for the head office at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the activities relating to the cultivation of rubber and marketing of the produce and, therefore, the entire claim made by the petitioner was wholly allowable in the computation of the agricultural income. However, learned counsel for the petitioner fairly admitted on instructions from the petitioner that the said amount has been expended as commission in respect of seven directors at the rate of Rs. 15,000 each, who are neither in whole time employment nor managing directors of the petitioner company. In view of the fair admission by learned counsel for the petitioner it requires no further consideration except confirming the order of the lower authorities. As stated already in respect of the expenses for empty drums, it has not been seri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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