PURTABPORE COMPANY LTD. vs STATE OF UTTAR PRADESH

The Supreme Court interpreted Section 6(2)(b)(iv) of the U.P. Agricultural Income-tax Act, 1948, to allow expenses incurred for management and supervision of agricultural operations, provided they are necessary for raising crops, marketing, and transportation. The Court emphasized that modern agricultural practices require a high degree of organization and technical skill, thus expenses related to staff accommodation, medical facilities, and transportation are permissible. The ruling affirmed that such expenses should not be narrowly construed but understood in the context of contemporary large-scale farming.