S.C : whether in computing the income chargeable to income-tax under the head ‘Profits and gains of business’, the deduction to be made to exclude the agricultural portion of the appellant’s income should be worked out in accordance with r. 7(2)(a) and not 7(2)(b) of the IT Rules, 1962 ?

Counsel Appeared

P.P.S. Janarthana Raja for Subbaraya Aiyar, Padmanbhan & Ramamani, for the Petitioner : N. V. Balasubramanian, for the Respondent

BY THE COURT

The assessee filed a petition under s. 256(2) of the IT Act, 1961, for directing the Tribunal to refer the following questions of law :

“(i) whether in computing the income chargeable to income-tax under the head ‘Profits and gains of business’, the deduction to be made to exclude the agricultural portion of the appellant’s income should be worked out in accordance with r. 7(2)(a) and not 7(2)(b) of the IT Rules, 1962 ?

(ii) whether the assessee was not entitled to deduct the depreciation in respect of farm assets used by the assessee in its business ?”

2. In the assessee’s own case, a similar case relating to an earlier year was decided against the assessee in CIT vs. Thiru Arooran Sugars Ltd. (1983) 36 CTR (Mad) 278 : (1983) 144 ITR 4 (Mad). Hence, this petition is rejected with costs. Counsel’s fee Rs. 250.

[Citation : 183 ITR 43]