Re-planting expenditure rules exclude vacancy-filling costs; later spending falls under land-purpose deduction, not the acreage-based proviso.

Expenditure incurred after re-plantation for filling up vacancies or dried-up plants in the planted area was not treated as re-planting expenditure under the acreage-based first proviso to section 5(g) of the Madras Agricultural Income-tax Act, 1955. The court reasoned that the proviso measured re-planting expenditure by the acreage in which re-planting was effected, which did not logically cover later filling-up costs. Such expenditure was instead referable to section 5(e) as expenditure laid out wholly and exclusively for the purpose of the land. The claim to treatment under section 5(g) therefore failed, and the finding was against the assessee.

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Issues: Whether expenditure incurred for filling up vacancies in a re-planted area was re-planting expenditure falling within the first proviso to section 5(g) of the Madras Agricultural Income-tax Act, 1955, or was deductible under section 5(e) of that Act.

Analysis: Re-planting expenditure under section 5(g) had to be understood with reference to the acreage in which re-planting was effected, because the first proviso itself used that yardstick. Expenditure incurred merely for filling up dried-up plants or vacancies created after re-plantation could not be conveniently or logically measured by that acreage-based standard. Such spending was therefore outside the scope of the proviso to section 5(g) and was properly referable to section 5(e) as expenditure laid out wholly and exclusively for the purpose of the land.

Conclusion: The expenditure was not re-planting expenditure within section 5(g) and did not qualify under the proviso; the assessee was not entitled to the claimed treatment. The finding was against the assessee and in favour of the Revenue.

Ratio Decidendi: Expenditure incurred after re-plantation for filling up vacancies in the planted area is not re-planting expenditure governed by the acreage-based proviso to section 5(g), but falls to be considered under the provision relating to expenditure wholly and exclusively for the purpose of the land.

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