TMI Blog2015 (6) TMI 427X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also used as disposal media for waste generated during the manufacturing process, it is estimated that 1 hector of mixed waste growing hard plantation has carbon take up capacity of 7.5 tons of carbon per acre. This provides a sink for green house gas like carbon dioxide. The land disposal technology called high rate exaporisation system was developed by the National Environment Research institute, Nagpur. The trees planted around the factory was done on the land including waste land. When the trees outgrow and started losing greenery the same are used as raw materials. It was further submitted by the assessee that different states have set up special pollution Board and other environmental agency to monitor and ensure that each indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the order of the Deputy Commissioner of Income Tax(Appeal-IV) whereby the Deputy Commissioner of Income Tax(Appeal-IV) set aside the disallowance by the Assessing Officer the claim of the Respondent/Assessee on account of VRS payments as revenue expenditure? b) Whether in the facts and in the circumstances of the case, the Learned Income Tax Tribunal erred in law in not appreciating that the pre-plantation expenditure are of capital nature and in confirming the order of the Deputy Commissioner of Income Tax (Appeal-IV) allowing the pre-plantation expenditure claimed by the respondent/assessee as revenue expenditure? Mr.Das, learned advocate appearing for the assesseerespondent drew our attention to a judgment of the Madhya Pradesh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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