1978 (12) TMI 3

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.... GOPALAN NAMBIYAR C.J.-The Agricultural Income-tax Appellate Tribunal, Trivandrum, has sent up its statement of the case and formulated the following question of law for our determination, namely : " Whether, on the facts and in the circumstances of this case, the Tribunal is correct in law in allowing legal expenses amounting to Rs. 6,423.54 ?" The assessee owns two estates, Skinnerpuram Es....

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....he Appellate Assistant Commissioner was a sum of Rs. 7,623.64 claimed by the assessee as legal expenses. Following its prior ruling in T.A. Nos. 129 to 134 of 1970, the Tribunal observed that legal charges are expenses incurred for the preservation and protection of an assessee's business interests and that it was an allowable deduction under section 5(j) "of the Kerala Agricultural Income-tax Act....

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....ural expenses " considered as an antithesis of agricultural income. It was pointed out that section 5(j) of the Agricultural Income-tax Act and section 10(2)(xv) of the Indian Income-tax Act, 1922, represent conceptions which are allied, though distinct ; and, while there should no doubt be a connection between the incurring of the expenditure and the earning of the income, that connection should ....