NILGIRI PLANTATIONS LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS revision is directed against the order of the Commissioner of Agricultural Income-tax, Karnataka, Bangalore, under section 35 of the Karnataka Agricultural Income-tax Act, 1957.

(2.) THE Commissioner by the said order has found fault with the assessment order in relation to the following three deductions allowed (1) consultant's fee Rs. 24,000, (2) general charges Rs. 7,418.44 and (3) auditor's fee Rs. 1,800.

(3.) SHOW that the payment made to the consultants was for the purpose of deriving agricultural income. But, to infer that the fee paid for obtaining advice in respect of a coffee estate would always be in the nature of capital expenditure may not be warranted. That part of the reasoning of the Commissioner cannot, therefore, be justified in the absence of relevant evidence.