1972 (9) TMI 30

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....ax cases is the same, they can be dealt with together, though they had been filed by different assessees. The question that is raised in these cases is as to whether the deduction under section 5(k) of the Madras Agricultural Income-tax Act towards the interest paid by the assessee in the previous year on the amounts borrowed and actually spent on the land from which agricultural income is derived....

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....onceded the claim of the petitioners, that the second proviso to section 5(k) was not correctly applied by the Agricultural Income-tax Officer. The Agricultural Income-tax Officer was wrong in allowing only 25 per cent. of the assessable agricultural income as a deduction within the scope of section 5(k). What should have been the basis of computation for relief was the 'agricultural income' as de....

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....gricultural income of a person shall be computed after making the deductions set out in various sub-sections set out thereunder. Sub-section (k) provides for deduction towards interest paid on the amount borrowed and actually spent by the assessee on the land. At the stage of finding out the deduction towards interest paid by the assessee, it is not possible to ascertain as to what exactly is the ....