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TMI Blog1994 (10) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... he trees would be amenable to tax. The addition made by the Agricultural Income-tax Officer was sustained by the appellate authority and the Tribunal. According to the assessee, if the sale proceeds come from the sale of the trees spontaneously grown, such sale proceeds are not taxable. Similarly, it was contended that if the trees are grown for the purpose of giving shade, then also the sale proceeds of these trees are not taxable. Reliance was placed on the decisions in State of Kerala v. Karimtharuvi Tea Estate Ltd. [1966] 60 ITR 275 (SC) ; United Nilgiri Tea Estates Co. Ltd. v. State of Tamil Nadu [1991] 191 ITR 397 (Mad) and Viswanatha Chettiar v. Agrl. ITO [1965] 55 ITR 692 (Mys). However, the learned Additional Government Pleader ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Agricultural Income-tax Act. According to the facts arising in this case, the Assessing Officer pointed out that the sale proceeds would have come out of the trees like silver-oak, meant for giving shade to the crops. According to the assessee, the trees are grown spontaneously. When the trees are grown spontaneously or when the trees are grown for giving shade to the crops, in both these cases, the sale proceeds of those trees are not taxable under the Agricultural Income-tax Act. Accordingly, the authorities below were not correct in adding the sum of Rs. 65,000 realised from the sale of trees. Hence, we delete the addition of Rs. 65,000. The second point arising in this revision is with regard to the deduction of Rs. 52,540 be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incurred wholly and exclusively for the purpose of the land, the assessee's claim cannot be allowed under section 5(e). However, learned counsel appearing for the assessee submitted that, even according to the Assessing Officer, the interest paid was for running the estate. Therefore, the rest of the expenditure, disallowed by the Assessing Officer, is not correct. We have also heard the learned Additional Government Pleader (Taxes), on this aspect. The learned Additional Government Pleader (Taxes) contended that inasmuch as no bifurcation of the expenses was shown by the assessee, it is not possible to grant relief as claimed under section 5(e) of the Act. According to the assessee, part of the loan amount was incurred for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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