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TMI Blog1980 (11) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... he instance of the revenue. The questions of law referred are said to arise out of the common order passed by the Tribunal disposing of A. I.T.A. Nos. 200 to 204 of 1974, filed by the assessee, in relation to the assessment years 1957-58 to 1960-61. The assessee is company owning rubber plantations in the State. In the assessment proceedings taken against it for the aforementioned assessment years, the company put forward claims for deduction in respect of, (A) loss incurred by it in the sale of certain assets such as old machinery, tools and furniture; (B) the amounts expended by it by way of stock exchange listing fee; and (C) and the expenditure incurred for payment of salary to the manager, contribution to provident fund and staff pensi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , under the Madras Plantations Tax Act and in the assessment years 1958-59, 1959-60 and 1960-61, and stock exchange listing fee in the year 1960-61 ? Were not these items incidental or ancillary to the agricultural activity carried on by the applicant and the derivation of income ?" In I.T.R. No. 88 of 1979 two questions of law have been referred to this court by the Tribunal at the instance of the revenue and they are: " (a) Whether, on the facts and in the circumstances of the case, the income from the sales of nursery in the assessment year 1959-60 is a capital income or not ? (b) Whether, on the facts and in the circumstances of the case, the expenses incurred for the salary to the manager, contribution to provident fund and staff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l capital assets in respect of which depreciation had been claimed by the company and allowed to it. Hence, there is no merit in the contention put forward by the assessee that the Tribunal ought to have allowed the deduction claimed by it in respect of loss incurred in the salt of such capital assets. The next item in respect of which the assessee's claim for deduction had been disallowed by the Tribunal is the amount expended by it in paying stock exchange listing fee in the year 1960-61. It is strongly urged before us by the counsel appearing for the assessee that the membership of the stock exchange adds to the prestige and reputation of the company and is bound to have favourable repercussions in the market in relation to the price t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That leaves us with the question whether the assessee is entitled to deduction in respect of expenditure incurred by it for payment of salary to the manager, contribution to the provident fund and staff pension fund of Edivanna Estate in the assessment years 1959-60 and 1960-61. Although the aforementioned estate which belonged to the assessee was sold away in 1958, the staff that was originally attached to that estate continued to be employed by the assessee itself in other estates belonging to it. Hence, the circumstances that Edivanna Estate had been sold away has little bearing on the question of the deductibility of the expenditure incurred by the assessee for the payment of salary, contribution to provident fund, etc., to such staff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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