BONAVENTURE ESTATE Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) THE assessee, a coffee planter is the petitioner in this tax case revision under section 54(1) of the Tamil Nadu Agricultural Income-tax Act, 1955. THE relevant assessment year is 1981-82. THE only question involved in this revision is whether the disallowance of interest claimed by the assessee to the extent of Rs. 2,91,664 by all the authorities below is justified. THE Assessing Officer and the first appellate authority disallowed the same on the ground that the borrowal, with reference to which the abovesaid interest claimed is made, itself is not genuine. But, the Tribunal reversed this factual finding and held that the said borrowal was genuine. But, according to it, all interest claim should only come under section 5(k) and cannot come under section 5(e) of the Tamil Nadu Agricultural Income-tax Act.

(2.) SECTION 5(k) of the Tamil Nadu Agricultural Income-tax Act runs as follows :

(3.) AT any rate, as already stated, since learned counsel for the Revenue herself fairly submits that the abovesaid entire sum of Rs. 2,91,664 would be deductible under section 5(e) of the Act, the assessee must be fully satisfied and there could be no grievance on the part of the assessee. Even before giving the abovesaid deduction of Rs. 2,91,664 there is a loss which, it is said, could be carried forward in accordance with the provisions of the Act. Then, the abovesaid figure of Rs. 2,91,664 also could be carried forward in accordance with the provisions of the Act.