1977 (9) TMI 34

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....ion arises with respect to the assessment to agricultural income-tax of the assessee for the year 1973-74. The assessee claimed deduction in respect of an amount of Rs. 6,573 paid as wealth-tax in respect of the property from which agricultural income was derived. The claim for deduction of the amount was disallowed by the Agricultural Income-tax Officer whose order was confirmed on appeal by the Appellate Assistant Commissioner. The relevant portion of the Appellate Assistant Commissioner's order reads as follows: " 1. Wealth-tax.-The appellant would claim deduction for Rs. 6,573 paid under wealth-tax and the assessing authority would reject it as not spent for earning the agricultural income. The appellant would contend that this being l....

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....72] 84 ITR 735 (SC). While discussing the claim for deduction of wealth-tax under section 10(1)/(2)(xv) of the Income-tax Act, 1961, more or less similarly worded, the Supreme Court after an exhaustive survey of the authorities, overruled its previous decision in Travancore Titanium Products' case [1966] 60 ITR 277 (SC) and held that the amount incurred by way of expenditure for wealth-tax was deductible for the purpose of the Income-tax Act. Counsel for the assessee strongly urged before us that the principle of the said decision should govern this case. We are inclined to think that it should. But counsel for the revenue raised two objections. In the first place, he submitted that the question of law whether the amount is deductible under....