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1961 (7) TMI 4 - SC - Income TaxWhether the Hyderabad Income-tax Act is ultra vires in so far as it seems to levy a tax on jagirs and samasthans ? Whether the sum of ₹ 14,390 and ₹ 38,079 or a part thereof could be allowed as revenue deduction under section 14(5)(a) or 14(5)(b) of the Hyderabad Income-tax Act ? Held that:- The Nizam could withhold his assent to a law contrary to the Ain if he chose ; but once he assented to it, the law derived its vitality, not from the act of the Legislative Assembly but from the act of the Nizam. It could not be questioned any more than a Firman issued by the Nizam. The Income-tax Act must, therefore, be regarded as binding upon those affected by its terms, and the question whether it could be introduced in the Legislative Assembly hardly arises. It must be regarded as a law emanating from His Exalted Highness the Nizam, the supreme legislator in the State, whose laws promulgated in any manner were binding upon the subject. The High Court correctly answered question against the appellant. The High Court put the burden of proof somewhat strictly upon the assessee. The Tribunal, though it gave no reasons, hold that the expenses were incurred in relation to the management. The conclusion is based on some evidence. These expenses fall within clause (a) of section 14(5) as expenditure in connection with land or its administration, and they amounted to ₹ 26,057 in the year 1358 Fasli. For the year. 1357 Fasli, the amount debatable to these items from ₹ 14,390 will have to be determined. The evidence before us is not sufficient to state the exact amount. In favour of assessee. Appeal partly allowed.
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