1997 (12) TMI 18

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....nstance of the Revenue, is directed against the order dated December 24, 1992, of the Tamil Nadu Agricultural Income-tax Appellate Tribunal, Madras-104 (for short "the Tribunal"), and made in A.T.A. No. 44 of 1992 relatable to the assessment year 1991-92. The assessee-company-Tvl. The Puthuthottam Estates Ltd., at No. 10, Damu Nagar, Puliakulam, Coimbatore-641 045, it appears, claimed legal exp....

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....the estate towards the discharge of the loan so incurred. However, some of the shareholders raised a dispute in the High Court. Naturally, the assessee-company entered appearance to defend their cause therein. In connection with the said dispute, it appears, legal expenses for defending the said action, inclusive of the lawyer's fees had been incurred to the tune of Rs. 15,000. Such sort of ....

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....for consideration is as to, "Whether the order of the Tribunal as above, on the facts and in the circumstances of the case, is sustainable in law?" The point : There is no pale of controversy that the assessee-company incurred the expenditure in a sum of Rs. 15,000, by way of legal expenses. The only question that arises for consideration is whether the expenses so incurred can qualify for d....

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....o not have any relationship to the agricultural income derived in the previous year. If the expenses are reasonably connected with the holding of the land and using it for the purpose of agriculture, those expenses will come under the expression, "for the purpose of the land". (Kil Kotagiri Tea and Coffee Estates Co. Ltd. v. Government of Madras [1974] 96 ITR 165 (Mad)). While laying down th....