1984 (7) TMI 12 - HC - Income Tax

Agricultural Income Business Expenditure Expenditure Incurred Income Tax Wholly And Exclusively

Summary

The Kerala High Court ruled in favor of the assessee, allowing the deduction for the premium paid on insurance against loss or theft of cash in transit under section 5(j) of the Kerala Agricultural Income-tax Act, 1950. The Tribunal found that the expenditure was allowable as it was intimately connected with the business and necessary for deriving income from the estate. The Court declined to answer question No. 2 and directed each party to bear their own costs.