1991 (1) TMI 8

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....of Rs. 5,475 received from the Rubber Board was liable to tax as agricultural income, and (2) whether expenses of the motor car belonging to the company used by the manager of the company, allegedly personal in nature, was liable to exemption from the agricultural income-tax or not, arise in the instant petition. Disputing the disallowance of various expenditures and inclusion of replanting subsid....

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.... the question whether the subsidy received from the Rubber Board is to be treated as revenue derived from land and, as such, exigible to agricultural income-tax, as held by the Tribunal, or, is not to be treated as agricultural income derived from the land but to be treated as a capital receipt, and as such, not exigible to agricultural income-tax, as contended by learned counsel for the petitione....

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..... Since it was not used for purposes of company's business, any expenses incurred upon it should not have been included in the taxable income. The Tribunal has said "The authorised representative for the appellants submitted that the appellant being a corporate body, the question of treating any expenditure as 'personal' does not arise ; that the car was only used by the employees of the compan....

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....a ground. However, this being a company, the use of the car for non-agricultural activity cannot be considered. We will restrict the disallowance to 25 per cent. Thus, there will be a relief of Rs. 7,219," It would indeed always depend upon the evidence that it may be said that a certain car belonging to the assessee-company was, in fact, in the personal use of any person, and not in the use of th....