https://www.taxtmi.com/caselaws?id=25421 Deductibility of legal expenses under the Kerala Agricultural Income-tax Act depends on a real, sufficient connection between the expenditure and the earning or protection of agricultural income. The required connection is not confined to expenses directly and immediately incurred to derive income, but it cannot be remote, indefinite or fanciful. The statutory test is allied to, though distinct from, the corresponding business-expenditure principle under the Indian Income-tax Act, 1922. Whether the connection is adequate remains a fact-specific determination requiring examination of the record and surrounding circumstances. The matter requires rehearing under this standard. en-us Thu, 14 Dec 1978 00:00:00 +0530 Thu, 28 Jan 2010 15:14:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25421 Deductibility of legal expenses under the Kerala Agricultural Income-tax Act depends on a real, sufficient connection between the expenditure and the earning or protection of agricultural income. The required connection is not confined to expenses directly and immediately incurred to derive income, but it cannot be remote, indefinite or fanciful. The statutory test is allied to, though distinct from, the corresponding business-expenditure principle under the Indian Income-tax Act, 1922. Whether the connection is adequate remains a fact-specific determination requiring examination of the record and surrounding circumstances. The matter requires rehearing under this standard. Case-Laws Income Tax Thu, 14 Dec 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25421