1995 (8) TMI 3

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....his tax case revision under section 54(1) of the Tamil Nadu Agricultural Income-tax Act, 1955. The relevant assessment year is 1981-82. The only question involved in this revision is whether the disallowance of interest claimed by the assessee to the extent of Rs. 2,91,664 by all the authorities below is justified. The Assessing Officer and the first appellate authority disallowed the same on the ....

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....ent. on an amount equivalent to twenty-five per cent. to the agricultural income from the land in that year." Section 5(e) of the Tamil Nadu Agricultural Income-tax Act, which is a residuary clause runs as follows: "Any expenditure incurred in the previous year (not being in the nature of capital expenditure or personal expenses of the assessee) laid out or expended wholly and exclusively fo....

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....r section 5(k) of the Act, deduction is not allowable in respect of any portion of the abovesaid sum of Rs. 2,91,664. Now before us, learned counsel for the Revenue fairly submits that the abovesaid sum of Rs. 2,91,664 would entirely fall only under the abovesaid residuary clause section 5(e) and not under section 5(k) of the Act. According to the said counsel, the reason for such submission is....

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....t must be noted that the term used in the said proviso is only "agricultural income" as defined under section 2(a) of the Act, and from which all the deductions under section 5 of the Act are allowed. The term used in the abovesaid proviso is not "total agricultural income" as defined in section 2(x) of the Act, which alone is charged to tax under the charging provision, viz., section 3 of the Act....