9911796707
TMI Blog1972 (8) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... 55. But, that claim has been disallowed by the assessing authority, the appellate authority and the Tribunal. The assessees contend before us that the said sum of Rs. 2,375 represents advances made to the labourers to be adjusted later as against their wages, and as the labourers did not turn up for work as expected nor returned the amount advanced the amounts have become bad debts. According to the assessees such amounts which have been expended for the purpose of the plantation have to be allowed as a deduction under section 5(e) of the Act. The learned counsel refers to the decision in Commissioner of Income-tax v. Mysore Sugar Co. Ltd., where the Supreme Court held that advances made by a sugar mill to the producers of sugarcane to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amounts are said to have been advanced. We have to, therefore, uphold the view taken by the authorities below on this question. There is a common question that arises in respect of both the years. The assessee have cut shade trees from their plantation which have become useless and realised a sum of Rs. 13,880 in the first year and Rs. 20,342 in the second year by way of sale of the trees so cut. The assessees included these amounts in their return as revenue receipt and the assessment was made on that basis. The assessees did not question the assessment on the said two sums before the Appellate Assistant Commissioner though they filed appeals in respect of other items. After the disposal of the appeals by the Appellate Assistant Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese two amounts as revenue receipts came to be canvassed by the assessees. The Tribunal held that raising additional grounds involving a subject- matter which was not challenged in the original appeal filed before them by the assessees, should be treated as filing fresh appeals, and that the same having been filed after considerable delay, they could not be entertained. It is this view of the Tribunal which is challenged by the assessees before us. According to the assessees the Tribunal has got ample powers to excuse the delay in filing additional grounds of appeal, that it is a matter of discretion which has to be exercised by the Tribunal in a judicious manner, and that dismissal of the assessees' applications to excuse the delay in fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Phool Chand Gajanand v. Commissioner of Income-tax and Commissioner of Income- tax v. S.Nelliappan as supporting his stand that the Tribunal has ample discretion to excuse the delay in filing the grounds of appeal and to deal with the same along with the other items involved in the original grounds of appeal. In Phool Chand Gajanand v. Commissioner of Income-tax additional grounds of appeal related to the same subject-matter of the appeal, and the case does not deal with a situation as the one arising in this case where the assessees want the question of assessability of a new item of income to be considered in the appeal by raising additional grounds. Therefore, that decision cannot apply to the facts of this case. Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions in Phool Chand Gajanand v. Commissioner of Income-tax and Commissioner of Income-tax v. S. Nelliappan has been considered, and we are in entire agreement with the view expressed by the learned judge in that case. It is significant to point out that there is no rule in the Madras Agricultural Income-tax Rules similar to the one in rule 11 of the Income-tax (Appellate Tribunal) Rules, 1963. B. R. Bamasi v. Commissioner of Income-tax also takes the same view. In R. M. Nitya Thevar v. State of Madras, Easun Engineering Co. Ltd. v. Joint Commercial Tax Officer and Central Camera Co. (P.) Ltd. v. Government of Madras, a question similar to the one arising in this case came up for consideration with reference to the jurisdiction of the Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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