1972 (12) TMI 1

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....ese are appeals by special leave. They are directed against the decision of the High Court of Allahabad in a reference under section 66(1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as " the Act "). The common question of law referred in these appeals was : " Whether the tax paid by the assessee-company on the tea-garden lands under the U.P. Large Land Holdings Tax Act, 1....

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....on of this court in Travancore Titanium Products case holding that if the expenditure laid out by the assessee is as an owner-cum-trader and the expenditure is really incidental to the carrying on of his business it must be treated to have been laid out by him as a trader and as incidental to his business. On the basis of that rule it came to the conclusion that the wealth-tax paid by a trader on ....

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....he tax paid under the U.P. Act XXXI of 1957 is a tax levied on the owners and not on the traders. Consequently, the ratio of the decision of this court in Indian Aluminium Co.'s case is inapplicable. We are unable to accept this contention as correct. A tea-grower is considered under the Act, read with the Rules, as an owner-cum-trader. Therefore, any item of expenditure incurred by him must be co....

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....n 2 of the Amendment Act of 1972. That section reads : " 2. Amendment of section 40.---In section 40 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the principal Act), after sub-clause (ii) of clause (a), the following sub-clause shall be, and shall be deemed always to have been, inserted, namely : '(iia) any sum paid on account of wealth-tax. Explanation.---For the ....