Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 1262 - ITAT KOLKATADisallowance made on account of cess on green leaf - whether cess levied on the production of the green leaf does not come under the purview of composite income? - Held that:- In accordance with the principle as laid by the Hon’ble High Court of Calcutta in the case of AFT Industries [2004 (7) TMI 81 - CALCUTTA High Court] which has been further strengthened by dismissal of SLP by the Hon’ble Supreme Court, we hold that the income so computed is to be apportioned 60: 40 of which 40 is assessable to tax under the Act. Thus, ground no-1 raised by revenue is, accordingly dismissed. Disallowance towards consultancy fees paid to M/s. Globally Managed Services (GMS) - Held that:- CIT-A found that the expenditure incurred by the assessee during normal course of business of tea plantation and the alternative crop farming resulted into the losses and the assessee terminated raising of such alternate crop in subsequent years and as such the expenditure incurred did not give a long lasting benefit to the assessee. We find there is continuity of business with common management and fund. We further find that the expenses in paying the consultancy fees is not for the new line of business and it was incurred for raising alternate crop under the permission of Assam Government to utilize the same land which is under tea plantation. Therefore, in our opinion, the assessee is entitled to claim such expenditure as revenue expenditure. In view of above, we find no infirmity in the impugned order of the CIT-A in deleting the same
|