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TMI Blog1977 (9) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... tion arises with respect to the assessment to agricultural income-tax of the assessee for the year 1973-74. The assessee claimed deduction in respect of an amount of Rs. 6,573 paid as wealth-tax in respect of the property from which agricultural income was derived. The claim for deduction of the amount was disallowed by the Agricultural Income-tax Officer whose order was confirmed on appeal by the Appellate Assistant Commissioner. The relevant portion of the Appellate Assistant Commissioner's order reads as follows: " 1. Wealth-tax.-The appellant would claim deduction for Rs. 6,573 paid under wealth-tax and the assessing authority would reject it as not spent for earning the agricultural income. The appellant would contend that this being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 972] 84 ITR 735 (SC). While discussing the claim for deduction of wealth-tax under section 10(1)/(2)(xv) of the Income-tax Act, 1961, more or less similarly worded, the Supreme Court after an exhaustive survey of the authorities, overruled its previous decision in Travancore Titanium Products' case [1966] 60 ITR 277 (SC) and held that the amount incurred by way of expenditure for wealth-tax was deductible for the purpose of the Income-tax Act. Counsel for the assessee strongly urged before us that the principle of the said decision should govern this case. We are inclined to think that it should. But counsel for the revenue raised two objections. In the first place, he submitted that the question of law whether the amount is deductible unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, answer the question of law as follows: The wealth-tax paid by the assessee on his agricultural lands is an allowable deduction under section 5(j) of the Kerala Agricultural Income-tax Act, 1950, provided the expenditure was wholly and exclusively incurred for the purpose of deriving agricultural income. Whether the expenditure was so incurred or not, is a matter to be found by the Tribunal for which purpose the Tribunal will take back the Agricultural Income-tax Appeal No. 243 of 1974 to its file and proceed to dispose of it in accordance with law. We answer the question of law to the extent indicated, in favour of the assessee and against the department. No costs. A copy of this judgment under the seal of this court and the signature ..... X X X X Extracts X X X X X X X X Extracts X X X X
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