TMI Blog1997 (12) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... Nadu Agricultural Income-tax Appellate Tribunal, Madras-104 (for short "the Tribunal"), and made in A.T.A. No. 44 of 1992 relatable to the assessment year 1991-92. The assessee-company-Tvl. The Puthuthottam Estates Ltd., at No. 10, Damu Nagar, Puliakulam, Coimbatore-641 045, it appears, claimed legal expenses to the tune of Rs. 15,000 by way of deduction under section 5(e) of the Tamil Nadu Agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised a dispute in the High Court. Naturally, the assessee-company entered appearance to defend their cause therein. In connection with the said dispute, it appears, legal expenses for defending the said action, inclusive of the lawyer's fees had been incurred to the tune of Rs. 15,000. Such sort of a claim of the assessee-company was rejected not only by the Agricultural Income-tax Officer, Pol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case, is sustainable in law?" The point : There is no pale of controversy that the assessee-company incurred the expenditure in a sum of Rs. 15,000, by way of legal expenses. The only question that arises for consideration is whether the expenses so incurred can qualify for deduction under section 5(e) of the Act, in the computation of the income for the relevant assessment y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reasonably connected with the holding of the land and using it for the purpose of agriculture, those expenses will come under the expression, "for the purpose of the land". (Kil Kotagiri Tea and Coffee Estates Co. Ltd. v. Government of Madras [1974] 96 ITR 165 (Mad)). While laying down the rule, as above, their Lordships of the Division Bench of this court also held that legal expenses incur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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