Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 561 - AT - Income TaxDepreciation Claim – As per AO assessee failed to furnish the evidence in support – Held that:- From the order of CIT(A), it is clear that evidences that these machineries were put to use as on 31.03.2005 were filed before him for the first time and these are not filed before the tribunal. Thus, the matter is remitted back to AO. Therefore, issue is set aside to file of AO and assessee will provide evidence before him to substantiate its claim that these machineries were put to use on or before 31.03.2005. Deletion of addition on account of cess on green leaf – Held that:- Issue is squarely covered in favour of the assessee and against the revenue by the decision of jurisdictional High Court in the case of AFT Industries Ltd. Vs. CIT (2004 (7) TMI 81 - CALCUTTA High Court). The petition is, therefore, dismissed. Restriction of income at Rs.4,58,302/- instead of the income assessed by AO at Rs.10,91,762/- on account of profit from purchase of green leaf – Held that:- Assessee has given a working to arrive at profit earned out of sale of tea processed out of purchased green tea leaves and on plucked tea green leaves and in view of this working the CIT(A) restricted the disallowance at Rs.4,58,302/- instead of computed by AO at Rs.10,91,762/-. As the Ld. Sr. DR could not point out any defect in computation of income, order of CIT(A) is upheld. Deletion of addition on account that sale of tea plant is not agricultural income and does not come under declared objective of the assessee company and also allowed deduction being agricultural income from Book Profit u/s. 115JB – As per AO the book profit does not indicate the total taxable income of the assessee – Held that:- Assessee before the AO as well as before CIT(A) has produced the evidences in the shape of agricultural receipts on account of sale of tea plants, which are agricultural income. We agree with the findings of CIT(A) that this sale of tea plants treated by assessee as agricultural receipts exclusively out of agricultural activity. As to composite income of sale proceeds to tea plant at 60% of book profit Rs.30,12,347/- is in the nature of agricultural income which is exempt u/s. 10(1) of the Act. Since these two items are of agricultural income it should be allowed as deduction while computing income u/s. 115JB of the Act being book profit of the assessee company. Thus, the order of CIT(A) is upheld.
|