1971 (9) TMI 64 - SC - Income Tax

Whether the fact that the applicant apportioned the sum of ₹ 79,680 out of the general revenue expenses of its estate towards the immature area and capitalised the same for purposes of its accounts precluded the appellant from claiming the same as revenue expenses for the purpose of agricultural income-tax assessment ?

Whether the Tribunal ought not to have considered the nature of the expenses amounting to ₹ 79,680 for the purpose of determining whether it is allowable expenditure or not irrespective of the way it was dealt with by the applicant for the purpose of its accounts ?

Held that:- The questions set out in the application of the assessee do arise for consideration and, therefore, the High Court should have directed the Tribunal to refer those questions to the High Court for its opinion.

In the result, we allow the appeal and direct the Tribunal to refer the two questions set out in the application of the assessee to the High Court for its opinion. Appeal allowed.