1984 (7) TMI 12

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..... elivered by T. KOCHU THOMMEN J.--The following questions have been referred to us by the Kerala Agricultural Income-tax Appellate Tribunal, Additional Bench, Kozhikode: " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the premium paid on the insurance against loss or theft of cash in transit is allowable deduction as per section 5(j) of .....

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..... ific prevision of section 5(n)(iv) of the Kerala Agricultural Income-tax Act, 1950 (" the Act "), which related only to loss or damage of crops or property and not to cash in transit. He further held that in so far as the section was not applicable to the claim of the assessee, it could not be treated as an expenditure laid out or expended wholly and exclusively for the purpose of deriving agricul .....

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..... t section 5(j) was attracted. It is not disputed that the expenditure incurred by way of premium paid on insurance against loss or theft of cash in transit will be an allowable expenditure in terms of section 5(j) provided the transit of cash was for the purpose of and intimately connected with the business so as to derive income therefrom. The premium paid on insurance covering such transport o .....

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