TMI Blog1993 (10) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner, Messrs. Catholic Diocese of Thiruvalla, was getting income from various crops including rubber from different estates. They did not concede any taxable income in the return submitted for the assessment years 1979-80 and 1980-81 on the ground that the entire income was spent for religious and charitable purposes. They claimed eligibility for exemption under section 4 of the Agricultural Income-tax Act. The consolidated statement of income filed for the two years disclosed net income from all the estates at Rs. 15,85,815.90 and Rs.13,41,363.95, respectively. The assessing authority found that the assessee has failed to maintain separate and verifiable accounts for agricultural income and the expenditure of such income towards religiou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stipulates that the total agricultural income of any previous year comprises all agricultural income derived from land situated within the State and received within or without the State. But this will not include among other things any agricultural income derived from property held under trust wholly for charitable or religious purposes to the extent to which such income is applied to such purposes in the State. Where any such income is accumulated or set apart for application to such purposes in the State the amount so accumulated or set apart to the extent to which the income so accumulated or set apart is not in excess of 25 per cent. of the agricultural income will also be excluded. The agricultural income is admittedly derived by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t concurred with the assessing authority regarding the method adopted by it in apportioning the amount of expenses incurred for charitable and religious purposes proportionately from both the agricultural and non-agricultural income. The Tribunal also adopted the same view. After referring to the replies given by the assessee for the years 1979-80 and 1980-81, the Tribunal observed that no attempt was made by the appellant to furnish the details clarifying the objection in that respect. The Tribunal held that, in the circumstances, the apportionment made on the basis of the consolidated accounts produced for both the years under appeal was just and proper. For that reason, the levy of tax on the portion of the net income so fixed was confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y regarding allocation of the amount applied in proportion to the agricultural and non-agricultural income. In the present case, the assessing authority has divided the expenditure incurred for charitable and religious purposes proportionately from both the agricultural and non-agricultural income and by giving due deductions to the net agricultural income proposed the claim for exemption was disallowed only because there was no separate verifiable accounts from which the agricultural income applied for charitable or religious purposes could be ascertained. The Tribunal has observed that the amount spent by the diocese from agricultural income for religious and charitable purposes is not proved by separate accounts or by any verifiable acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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