2001 (9) TMI 40

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cting legal expenses incurred by it in contesting the quantum of compensation awarded by the State for the compulsory deprivation of agricultural land which was held by the assessee primarily on lease. The assessee was also deprived of some extent of land which it had owned. All this was the consequence of the legislation imposing a ceiling on land holdings and the award of very limited compensati .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... r sum than the one the State had provided for in the legislation. The Tribunal has held that the expenditure obviously is an expenditure incurred in connection with the agricultural lands from which the assessee was deriving agricultural income which income was not subject to tax under the Central enactment. That was subjected to tax under the State legislation. Any expenditure incurred in connect .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... operly be regarded as constituting income of the assessee during the relevant assessment year which is the assessment year 1981-82. A question similar to this was considered by us in the case of CIT v. South India Sugars Ltd. [2001] 248 ITR 92 (Mad). It has been held therein that the amount so held by the assessee subject to the orders of the court, was not to be regarded as the assessee's income, .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X