https://www.taxtmi.com/caselaws?id=200376 Expenditure falls within Explanation 2 to section 5 of the Agricultural Income-tax Act, 1950 only if it has a definite, real and proximate connection with the cultivation, upkeep or maintenance of immature plants. A mere arithmetical allocation of general estate overheads on an acre basis is insufficient, because the item must be shown to have been incurred by reason of the immature area. On the facts found, the disputed overheads did not directly relate to such cultivation or maintenance, and the departmental allocation method was arbitrary. The disallowance was therefore not justified, and the assessee succeeded on the reference. en-us Mon, 05 Aug 1963 00:00:00 +0530 Tue, 27 Mar 2018 12:58:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200376 Expenditure falls within Explanation 2 to section 5 of the Agricultural Income-tax Act, 1950 only if it has a definite, real and proximate connection with the cultivation, upkeep or maintenance of immature plants. A mere arithmetical allocation of general estate overheads on an acre basis is insufficient, because the item must be shown to have been incurred by reason of the immature area. On the facts found, the disputed overheads did not directly relate to such cultivation or maintenance, and the departmental allocation method was arbitrary. The disallowance was therefore not justified, and the assessee succeeded on the reference. Case-Laws Income Tax Mon, 05 Aug 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200376