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2020 (3) TMI 1134 - AT - Income TaxDisallowance of claim of deduction on cost of replanting under Rule 7A of the Income-tax Rules, 1962 - assessee is a plantation company, which is fully owned by the Government of Kerala - assessee undertakes processing of latex into value added forms like centrifuging latex - HELD THAT:- The Hon’ble Kerala High Court in the case of M/s.Rehabilitation Plantations Ltd. [2012 (6) TMI 570 - KERALA HIGH COURT] had categorically held that the expenditure incurred for planting and development of plantation up to maturity has to be necessarily capitalized and it cannot be allowed as revenue expenditure. The assessee does not have a case that the expenses incurred under the head replanting and maintenance are for infilling through replacement of dead trees or other trees that have become useless. On the contrary, it is an admitted position that the replanting expenses and maintenance expenses are incurred for planting new area of rubber and not an area already planted with yielding rubber. The finding of the Hon’ble Kerala High Court being very clear and categorical, the judgment is binding on the lower authorities. - Decided against assessee.
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