BAKER R G A Vs. STATE OF KERALA

JUDGEMENT

(1.) THESE references have been made by the Agricultural Income-tax Appellate Tribunal, Trivandrum, under Section 60(1) of the Agrl. I.T. Act, 1950. The assessment years are 1968-69 to 1970-71. The assessee was assessed as a tenant-in-common in respect of an estate owned by three persons, namely, (1) Miss A.D. Baker, (2) Mr. R.G.A. Baker and (3) Mrs. R.V. Bread, the first owning a 4/8ths share, the second 3/8ths, and the 3rd, 1/8th. The assessee is Mr. R. G. A. Baker. In the course of the assessment proceedings the assessee claimed the pension paid to himself, as a deductible item of expenditure under Section 5(j) of the Agrl. I.T. Act. That section reads :

(2.) WE think the matter has not received full or careful attention and consideration at the hands of the Tribunal and the reasoning of the Tribunal cannot stand. This court recently had occasion to examine the scope and application of Section 5(j) of the Agrl. I.T. Act in the decision in Commr. of Agrl. I.T. v. Malayalam Plantations Ltd., 1978 115 ITR 624. A Division Bench of this court referred to Section 10(2))xv) of the Indian I.T. Act, 1922, and compared the same with Section 5(j) of the Agrl. I.T Act. Reference was made to the ruling of another Division Bench of this court in Nilambur Rubber Co. Ltd.'s case [1969] 71 ITR 686 (Ker), where it was pointed out that despite the different language of relevant sections, the position under Section 5(j) of the Agl. I.T. Act is the same as that disclosed by Section 10(2)(xv) of the Indian I.T. Act, 1922. In view of this position, the view taken by the Tribunal that all deductions allowable under the I.T. Act are not allowable under Section 5(j) of the Agrl. I.T. Act requires re-examination.

(3.) IN the circumstances, we decline to answer the question of law and direct the Tribunal to rehear the appeal and dispose of the same afresh in accordance with law and in the light of the observations contained in this judgment. We make no order as to costs.