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2012 (6) TMI 570 - HC - Income TaxEntitlement under Rule 7A of ITR for deduction of expenditure incurred on replantation of rubber - appellant is a Plantation Company jointly set up by the State and Central Governments engaged in rubber cultivation - Held that:- Expenditure covered by Rule 7A(2) does not cover expenditure incurred for replantation of an area and only provides for deduction of expenditure for infilling through replacement of dead trees or other trees that have become useless, which is not the case here - Rule 7A(2) is in the same line as Rule 7B(2) - yielding healthy rubber plantation does not admit replacement of dead plants within such area as new saplings cannot grow under shade and is never done by any planter - If the appellant's claim is allowed the portion of the agricultural income determined by the Central Income Tax Officer will be in direct conflict with the Scheme of assessment of agricultural income under the State AIT Act which prohibits deduction of expenditure on re plantation of an area and only an incentive is provided by way of re plantation allowances under Rule 3 of the State Agricultural Income Tax Rules - the assessee has no case that they have incurred any expenditure for infilling the yielding area and the expenditure incurred is only for replantation after cutting and removing old plantation, there is no question of considering or allowing the claim under Rule 7A(2) - against assessee.
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