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TMI Blog2002 (2) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal, whereby a sum of Rs.94,571.91 has been disallowed on the ground that this claim would not come within the purview of section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955. Heard learned counsel on either side. The abovesaid amount has been claimed as exemption on the ground the said amount is the interest paid on the loan borrowed and spent for the purpose of construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 5(e) of the Act, exemption could not be granted in view of the restriction contained in section 5(k) which is a specific provision. The reason given by the Tribunal is erroneous in our view. Section 5(e) of the Act was considered by this court on an earlier occasion and held as in the nature of residual clause and would take in its fold not only the expenditure incurred "for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he purpose of the land" under section 5(e). So far as the present case is concerned, the amount of Rs. 94,571.91 has been stated to be the interest on the amount borrowed and expended for construction of roads, revetments, fencing, boundaries, irrigation and purchase of sprayers, machineries, pipes, overhead tanks, motors, etc., which definitely have a nexus or relationship with the agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the revision in T.C. (R) No. 450 of 1999 is allowed and the order of the Tribunal dated July 10, 1990, in A.T.A. No. 14 of 1990 is set aside. For the reasons stated in T. C. (R) No. 450 of 1999, T. C. (R) Nos. 451 and 452 of 1999 are allowed to the extent of the expenditure disallowed by the Tribunal on the ground the expenses are not coming under section 5(e) of the Tamil Nadu Agricultural Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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