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2018 (2) TMI 1143 - AT - Income TaxDisallowance on account of levy of cess on green leaves - Held that:- As relying on Commissioner of Income Tax Versus AFT Industries Ltd. [2004 (7) TMI 81 - CALCUTTA High Court] Cess levied on the production of green leaf would come under the purview of composite income. Thus, ground no-1 raised by the revenue is, accordingly dismissed. Addition made on account of Section 80IE (2)(ii) - only plant and machinery of manufacturing is to be considered - Held that:- It is observed that the assessee has two processes in tea business i.e. growing of tea and manufacturing of tea. The assessee grows tea in its own gardens and manufactures tea from such produce. The case of the assessee is that this deduction is available in case a assessee manufacturing of tea and hence only plant and machinery of manufacturing is to be considered. Whether the opening valuations of plant and machineries of water supply system and irrigation system as shown under farm account is to be considered the part and parcel of the value of plant and machinery as on 01.04.2009 for calculating the percentage of addition to plant and machinery for claiming deduction u/s 80IE or not is the issue before us. We find that the water supply system and irrigation system admittedly are not part of tea manufacturing processes. Therefore, the said opening valuation of said machineries should not be considered for the purpose of claiming deduction u/s 80IE of the Act. - Decided against revenue
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