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2016 (3) TMI 244 - AT - Income TaxAllowance of puja expense and temple expenses - whether such expenses are non-business expenditure? - Held that:- We find that the puja expense incurred on occasion of Diwali and Mahurat are customary expenses and going by the turnover of the assessee-company and the nature of the business of the assessee, we feel that these are incurred for the harmony of the assessee-company’s employees and these are for the purpose of business. Similar are the reasons for incurring temple expense. Hence expenditure allowed - Decided in favour of assessee Addition made on account of cess on green leaf - Held that:- This issue is covered by the decision of AFT Industries Ltd. V. CIT (2004 (7) TMI 81 - CALCUTTA High Court) wherein it has been decided by Hon’ble jurisdictional High Court that cess on green leaf is a normal business expenditure and once the Hon’ble jurisdictional High Court decides the issue in favour of assessee, same is covered.- Decided in favour of assessee Non-deduction of TDS on expenses of commission payment u/s. 195(1) - Held that:- The commission paid to foreign agents, who are not having permanent establishment business place in India and they are providing services outside India and even the payment is directly made outside India in foreign exchange. According to assessee, assessee's income does not accrue or arise in India and once income does not accrue or arise in India, the assessee is not liable to deduct TDS on foreign payments. This issue is covered by the decision of Hon’ble Supreme Court in the case of GE India Technology Centre P. Ltd. v. CIT (2010 (9) TMI 7 - SUPREME COURT OF INDIA ) in favour of assessee Disallowance of Nursery Expenses - revenue v/s capital expenses - Held that:- We find that the assessee has incurred expenditure for replantation in the existing area and plants grown in the nursery were used for replacement of dead plants within the plantation area. This fact has not been denied by revenue before CIT(A) or before us now. The AO also noted that this is re-plantation in the existing area and replacement of dead plants but by going through the volume of expenditure he made disallowance and Hon’ble jurisdictional High Court in the case of Tasati Tea Ltd., (2003 (2) TMI 42 - CALCUTTA High Court ) has considered the issue and allowed the claim of replacement of plants in existing area against dead plants. The expenditure claimed by appellant is to be allowed as revenue expenditure - Decided in favour of assessee MAT computation - deduction of wealth tax while computing book profit u/s. 115JB - Held that:- No infirmity in the order of CIT(A) as he allowed the claim of assessee by relying on the decision of ITAT Kolkata in the case of Usha Martin Industries Ltd., (2000 (3) TMI 170 - ITAT CALCUTTA-E ). CIT(A) didn't erred in law in directing the AO to deduct Wealth Tax from the net profit to ascertain book profit u/s. 115JB. - Decided in favour of assessee
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