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1986 (7) TMI 85 - SUPREME COURTWhether the sum of ₹ 33,747.09 credited in the relevant previous year could be assessed to tax for the year 1964-65? Held that:- The view taken by the High Court in the case before us is right. The remission cannot, in our opinion, be considered as amounting to receipt of agricultural income. What was allowed to be deducted from the total agricultural income of the assesses was interest pursuant to section 5 of the Act. It was a deduction made permissible by the Act. To be regarded as taxable in the hands of the assesses, the amount which was the subject of remission must be capable of being described as agricultural income. As the High Court has observed in the present case " what was returned to the assessee has nothing to do with the activities of the assessee, it does not arise from business nor does it arise from agricultural operations when the assessee is an agriculturist " In regard to sub-section (2A) of section 10 of the Indian Income-tax Act, 1922, that it has been replaced by an even wider provision as sub-section (1) of section 41 of the Income-tax Act, 1961. No provision of that nature finds place in the Kerala Agricultural Income-tax Act. Appeal dismissed.
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