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2008 (1) TMI 822 - KERALA HIGH COURTDisallowance of deduction claimed under section 9(4) of the Kerala Agricultural Income-tax Act, 1991 on investment in the equity of a company which set up an industry for centrifuging latex Held that:- If the assessee's contention that ceiling of 50 per cent. is with reference to total agricultural income before computation is accepted, then the assessee will be able to borrow funds and invest in the eligible industry and claim deduction which is not intended under the Act. In this particular case, the assessee whose agricultural income is computed at ₹ 39,67,570 has made an investment of ₹ 68 lakhs in an industry engaged in manufacture of centrifuged latex. Obviously, since the investment exceeds the income, it does not qualify for deduction. Therefore, even if our answer to the first question was in favour of the assessee, we do not think the assessee would have got benefit because as against the agricultural income computed at ₹ 39,67,570, the assessee has made investment of ₹ 68 lakhs which is not permissible under section 9(4) of the Act. Appeal dismissed.
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