https://www.taxtmi.com/caselaws?id=20357 Section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955 allows deduction only for expenditure incurred wholly and exclusively for the purposes of the land. Interest on loans borrowed and spent on immature coffee plants was treated as sufficiently connected with agricultural income and therefore deductible, following prior construction of the same provision. Payments made for conducting dramas as labour welfare expenses were held to have only an indirect and remote nexus with agricultural activity, so they were not deductible. The governing test is the presence of a sufficient nexus with the land and agricultural income of the previous year; expenditure lacking that connection falls outside section 5(e). en-us Wed, 08 Jul 1992 00:00:00 +0530 Fri, 13 Nov 2009 14:08:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20357 Section 5(e) of the Tamil Nadu Agricultural Income-tax Act, 1955 allows deduction only for expenditure incurred wholly and exclusively for the purposes of the land. Interest on loans borrowed and spent on immature coffee plants was treated as sufficiently connected with agricultural income and therefore deductible, following prior construction of the same provision. Payments made for conducting dramas as labour welfare expenses were held to have only an indirect and remote nexus with agricultural activity, so they were not deductible. The governing test is the presence of a sufficient nexus with the land and agricultural income of the previous year; expenditure lacking that connection falls outside section 5(e). Case-Laws Income Tax Wed, 08 Jul 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20357