9911796707
TMI Blog1992 (6) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts and considering the various claims for deduction, determined the net assessable income at Rs. 34,35,514 and the total tax due for the said assessment year from the assessee at Rs. 22,33,084.10. Aggrieved against the action of the assessing authority in disallowing certain deductions claimed, an appeal has been preferred before the Assistant Commissioner of Agricultural Income-tax, Nagercoil. The first appellate authority partly allowed the appeal by sustaining deductions claimed on certain accounts and in other respects dismissed the appeal. The assessee pursued the matter on further appeal before the Tamil Nadu Agricultural Income-tax Appellate Tribunal, Madras. Before the Tribunal, deductions have been claimed under nearly 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (T. C. Nos. 711 to 713 of 198 1, dated February 19, 199 1), relating to the very case of the petitioner with regard to earlier years, was pressed into service. We have carefully considered the submissions of learned counsel appearing on either side. In our view, the authorities below cannot be said to have committed any patent error of law nor could their approach,appreciation and findings be said to have been vitiated by any perversity of approach. Section 5(e) of the Act reads as thereunder : "any expenditure incurred in the previous year (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively for the purpose of the land ; " Though the scope and purport of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not necessarily incurred for deriving agricultural income. But at the same time, such judgments have repeatedly reiterated and emphasised the fact that notwithstanding the possible wide import of the expression, it should be substantiated to have the benefit of the said provision, that the expenditure in question has been expended wholly and exclusively for the purpose of the land, meaning thereby that the expenses in question should be shown to have been spent for the purpose of or in connection with the lands, though not directly having nexus to the agricultural income derived. Consequently, sufficient nexus between the expenses incurred and the land or the activities connected with the land should be substantiated. Hence, in our view, un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liar provisions contained under the Income-tax Act, 1961, and, therefore, cannot be pressed into service, without regard to the special language used in the Act under consideration before us. It may also be noticed for the sake of completeness that, in the unreported decision relied upon by the learned Additional Government Pleader, the Division Bench of this court held that tax paid under section 111 of the Madras City Municipal (Corporation) Act, being rates on profession, art or calling or business or appointment within the city of Madras, there is absolutely no relevance to the tax paid at Madras to the Corporation for the land and this claim for deduction need not be sustained under section 5(e) of the Act. For all the reasons stated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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