https://www.taxtmi.com/caselaws?id=179361 Managing agency commission paid for supervision and management of agricultural operations was treated as an allowable cultivation expense under section 7(2)(e) of the Hyderabad Agricultural Income-tax Act, 1950, because its reference to net profits did not change its true character as payment for services connected with earning agricultural income. Expenditure on huts, camps and labour amenities for large-scale cultivation was also held deductible as cultivation expense, since it was recurring, temporary in nature, and did not create any enduring capital asset. The practical connection of the outlay with the process of raising the crop, rather than with acquisition of capital, was decisive. The assessee's deductions were upheld. en-us Fri, 14 Jun 1963 00:00:00 +0530 Sat, 27 Feb 2016 10:14:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179361 Managing agency commission paid for supervision and management of agricultural operations was treated as an allowable cultivation expense under section 7(2)(e) of the Hyderabad Agricultural Income-tax Act, 1950, because its reference to net profits did not change its true character as payment for services connected with earning agricultural income. Expenditure on huts, camps and labour amenities for large-scale cultivation was also held deductible as cultivation expense, since it was recurring, temporary in nature, and did not create any enduring capital asset. The practical connection of the outlay with the process of raising the crop, rather than with acquisition of capital, was decisive. The assessee's deductions were upheld. Case-Laws Income Tax Fri, 14 Jun 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179361