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TMI Blog1985 (11) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... The following two questions have been referred to us by the Agricultural Income-tax Appellate Tribunal, Additional Bench, Kozhikode: " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in disallowing the expenditure for levelling of the football ground and the tractor charges which is incidental to the purpose of deriving agricultural income ? 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onfirmed in appeal by both the authorities. Relying upon the decision of the Bombay High Court in Teksons P. Ltd. v. CIT (No. 2) [1979] 120 ITR 745, it is contended on behalf of the assessee that the expenditure incurred for levelling the football ground was an allowable expenditure in terms of section 5(j) of the Kerala Agricultural Income-tax Act, 1950. Referring to section 37(1) of the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 5(j) of the Kerala Agricultural Income-tax Act, 1950. Section 5(j) reads: " 5. (j) any expenditure (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 deriving the agricultural income. " In order to come within section 5(j), the assessee has to show that the expenditure has been laid out or e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expropriation, coercive process or assertion of hostile title; it may also comprehend payment of statutory dues and taxes imposed as a pre-condition to commence or for carrying on of a business; it may comprehend many other acts incidental to the carrying on of a business. " The question is not whether it is a capital expenditure, but whether it is an allowable expenditure under section 5(j). T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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