TMI Blog1965 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... S. MENON., P. GOVINDAN NAIR. JUDGMENT The judgment of the court was delivered by GOVINDAN NAIR J.-This income-tax referred case arises out of an order of reference dated December 13, 1963, passed by the Agricultural Income-tax Appellate Tribunal, Trivandrum. The assessee concerned has been assessed to agricultural income-tax for the year 1957-58. The corresponding accounting period of 12 mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elate to a sum of Rs. 6,066-14-0 admittedly paid by way of retrenchment compensation and another sum of Rs. 6,055 written off as bad debts. Dealing with the first of these amounts, it is seen that retrenchment compensation was paid because some part of the land from which agricultural income was derived was either acquired or sold by the assessee. The authorities have allowed a sum of Rs. 3,150 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nothing to indicate the terms of the transfer. It may be that the assessee had received full consideration because he has not been able to induce the transferee to undertake the liability to retrenchment compensation provided by the section. If that be so, it would not be correct to say that this amount paid should be an item of deduction in computing the agricultural income of the assessee. We t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Daga v. Commissioner of Income-tax should govern the question whether the deduction claimed can be allowed. In a recent decision of this court, I.T.R. No. 13 of 1964 , the above decisions have been relied on and followed. We think the same principle must apply in deciding the question here. Applying that principle we hold that this item represents an allowable deduction. We accordingly allow this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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