1989 (11) TMI 32

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..... e Income-tax Appellate Tribunal has referred the following five questions of law for the decision of this court : "(1) Whether, on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the sale proceeds of rubber trees for which there was the basic operation of planting and subsequent maintenance is not revenue derived from land and, therefore, not agric .....

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..... Whether, on the facts and circumstances of the case, the Appellate Tribunal was justified in holding that the expenses incurred by way of manuring, spraying, weeding, etc., cannot be considered as cost of improvement under section 55 of the Income-tax Act, after holding that the assessee has incurred expenditure for raising the rubber trees and so there is cost incurred by the assessee for raising .....

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..... als. Very many contentions were taken on behalf of the assessee and on behalf of the Revenue. This reference is only at the instance of the assessee in his appeal. 1. T. A. No. 16 (Coch) of 1982. So, we are concerned only with those questions raised by the assessee before the Appellate Tribunal. The Appellate Tribunal held that the plea of the assessee that the sale of trees brought in agricultura .....

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..... n view of the order of remit by the Tribunal, no answer is called for on questions Nos. 3 and 4. Questions Nos. 1 and 2 were also not pressed. The only surviving plea is regarding the expenditure incurred by the assessee for raising the rubber trees and the cultivation expenses, which were claimed as cost of improvement. Section 55 of the Income-tax Act deals with the cost of improvement and stat .....

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..... not be considered to be cost of improvement as envisaged by section 55 of the Income-tax Act. We, therefore, answer question No. 5, referred to us, in the affirmative, against the assessee and in favour of the Revenue. A copy of this judgment under the seal of this court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench.
Case laws, Decisio .....

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