1969 (11) TMI 10

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..... adras Agricultural Income-tax Appellate Tribunal, Madras, in Appellate Tribunal Appeal No. 131 of 1964, have come up to this court in revision. Messrs. Tipperary Estates Company, Yercaud, Salem District, is a partnership firm. Besides the partners, who associated themselves in the firm, there was a managing partner. Under the terms of the partnership the managing partner, because of certain functi .....

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..... n up in appeal before the Assistant Commissioner, he was of the view that the entire amount of Rs. 8,150 should be disallowed. The Tribunal, on appeal, after noticing the respective duties undertaken by both the managing partner and the other partner, were satisfied that the entire sum of Rs. 8,150 was to be allowed as an expenditure incurred in the accountable year laid out or expended wholly or .....

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..... authority and the Tribunal was right in allowing the deduction. We are unable to agree with the contentions of the learned Government pleader. The facts noted in the instant case are that the managing partner was looking after the employment of staff, raising of finance for the estate, and borrowing on bank account and looking after the court work of the firm besides being made responsible for t .....

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..... down by this court in State of Madras v. Moulvie Estate. The learned Chief justice, rendering the judgment, said : " It is a problem to be answered in each case, whether what is, sought to be claimed as an allowance is a real expenditure laid out for the purpose of the business, in the instant case for the purpose of the land. If the expenditure, in comparison with the total profits, is excessive .....

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..... rtner exercised such powers as a superintendent and attended to the field work connected with the estate. These are facts which are not controverted. In such circumstances, we are unable to say that the payment to Sri V. Natarajan was a device to escape tax. The Tribunal came to the correct conclusion and this tax case is dismissed without costs. Case dismissed.
Case laws, Decisions, Judgeme .....

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