TMI Blog1971 (8) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to ascertain the agricultural income chargeable to tax, is justified - - - - - Dated:- 10-8-1971 - Judge(s) : RAGHAVAN., K. VEERASWAMY. JUDGMENT The judgment of the court was delivered by VEERASWAMI C.J.-This batch of tax cases is concerned with the question whether the Tribunal's view that the deductions under section 80-I of the Income-tax Act should be applied to the profits and ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t after negativing the contention of the assessee that agricultural income should be taken to be 60 per cent. of Rs. 39,24,434 minus 8 per cent. of it. His view was that no such deduction was allowable under the provisions of the Agricultural Income-tax Act. This view did not prevail eventually with the Tribunal, in our opinion, quite rightly. We agree that no deduction under the Agricultural In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x. The forty per cent. contemplated by the rule is the chargeable income and that means, before applying the forty per cent. rule, the income should have been computed in accordance with the provisions of the Act, that is to say, after allowing the deductions including those under chapter VI-A of the Income-tax Act. If that has not been done, and the Income-tax Officer, for the purpose of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by which the forty per cent. of the income should be ascertained for the purpose of that Act and 60 per cost of the income for the purpose of the Agricultural Income-tax Act. The proportion can be applied only if the business income as computed under the Act has also suffered deductions under section 80-I. On that view, the tax cases are dismissed with costs. Counsel's fee Rs. 250 in each case. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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