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TMI Blog1966 (9) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... was higher than that shown by the respondent, he could not also estimate that the expenses incurred in respect of that higher produce must have been larger than the amount actually shown by the respondent. The assessing authority, in thus estimating the allowable expenditure at a figure higher than the amount claimed by the respondent, had full justification in the circumstance that he had estimated the produce also at a higher figure. The answer returned by the High Court was, therefore, perfectly correct. The appeal fails - Civil Appeal No. 405 of 1965 - - - Dated:- 30-9-1966 - Judge(s) : V. RAMASWAMY., J. C. SHAH., V. BHARGAVA JUDGMENT The judgment of the court was delivered by BHARGAVA J.--This appeal brought up by special l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sum of Rs. 5,769-12-3 actually spent and claimed by the respondent in his return. The Revision Board, instead of deciding the question, expressed its opinion on it and referred the following question for the opinion of the Allahabad High Court : " An assessee files a return showing his income from and the expenses of cultivation under section 6(2)(b) of the Agricultural Income-tax Act. His returns are rejected and the income is determined to be much higher than what has been shown in the returns. Is it open to the assessing authority in view of the increase in the income to allow a larger amount by way of expenses than what was shown in the returns, or is the statement made in the returns binding on the assessee ? " The High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontemplates is that the assessing authority must determine the expenses incurred in raising the crop and on operations leading to its sale. Rule 13 framed by the U. P. Government can only be interpreted as laying down the principles according to which the assessing authority must ordinarily determine the expenses incurred for the purpose of deduction under section 6(2)(b)(iv) of the Act. These principles cannot, however, be held to fetter the power of the assessing authority to arrive at the correct figure of expenses incurred allowable under section 6(2)(b)(iv) of the Act. In the case before us, the expenses by the respondent had been claimed on the basis of a yield which, according to the assessing authority, was lower than the actual yie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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