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2015 (6) TMI 427 - HC - Income TaxPlantation expenditures - ITAT allowed it as a revenue expenditure - Held that:- As relying on case of Hindustan Electro Graphites Ltd. Vs. CIT [1995 (12) TMI 67 - MADHYA PRADESH High Court ] wherein held that the expenditure did not result in any gain to the assessee and did not enhance the value of the establishment. The expenditure was intended to make the atmosphere pollution-free. The Tribunal did not record any categorical finding that the expenditure resulted in any appreciation of the assets or was unrelated to the business activities of the assessee. Plantation in such factory is necessary to avoid pollution of environment and create congenial atmosphere. The Tribunal disallowed the expenditure on wrong premises. The amount expended was wholly and exclusively for the purposes of the business and was not in the nature of capital expenditure or personal expenses of the assessee. The amount was deductible under section 37 - Decided against revenue. VRS payments - ITAT allowed it as a revenue expenditure - Held that:- As relying on case of Commissioner of Incometax Vs. Simpson and Co. Ltd. (1996 (6) TMI 12 - MADRAS High Court) which was also considered by the learned Tribunal, wherein held, that the amount paid to employees under the Voluntary Retirement Scheme was an allowable deduction as the expenditure was incurred on grounds of commercial expediency and the expenditure was laid out wholly and exclusively for purposes of the business of the assessee. - Decided against revenue.
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