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2015 (12) TMI 1455 - ITAT KOLKATA

2015 (12) TMI 1455 - ITAT KOLKATA - TMI - Allowance of claim of exemption u/s 10(30) - CIT(A) directing the ld. AO to verify the certificate issued by the Tea Board for the subsidy paid to the assessee - Held that:- We have heard the ld. AR on this issue and held that in the interest of justice and fair play, this issue be restored to the file of the ld. AO to verify the certificate from Tea Board for the subsidies paid to the assessee during the assessment year under appeal and direct the ld. A .....

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ia) wherein it has been held that statutory items like Provident Fund and ESI, if paid before the due date of filing the return of income have to be allowed irrespective of the fact whether the contributions related to the employee and employer. However, we are not able to verify from the materials available on record as to whether the provident fund remittances were indeed made before the due date of filing the return of income by the assessee. Accordingly, we set aside this issue to the file o .....

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Court) wherein held entire amount paid as cess on green leaf seems to be eligible for deduction - Decided against revenue

Claim of subsidy for the purpose of ascertaining the book profit u/s 115JB - CIT(A) allowed claim - Held that:- this issue is only consequential to the first ground raised by the revenue. There, we have directed the ld. AO to grant exemption u/s 10(30) of the Act towards tea plantation subsidy to the extent of subsidy received during the year subject to production .....

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Respondent : Shri V.N.Purohit,FCA & Shri H.V.Bhardwaj,ACA ORDER Per Shri M.Balaganesh, AM This appeal of revenue arises out of order of ld.CIT(A)-IV, Kolkata in Appeal No.174/CIT(A)-IV/08-09 dated 23.08.2011 for A.Y.2006-07 against the order of assessment framed u/s 143(3) of the I.T.Act, 1961 (herein after referred to as the Act ). 2. The first issue to be decided is as to whether the ld. CIT(A) is correct in directing the ld. AO to verify the certificate issued by the Tea Board for the sub .....

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d. AO mentioned that only the subsidy received during the year could be granted exemption u/s 10(30) of the Act on furnishing of certificate from Tea Board in that regard. Accordingly, he allowed exemption u/s 10(30) of the Act only to the extent of ₹ 8,23,265/- in the assessment and had not granted exemption on other subsidies as certificate from Tea Board to that effect were not produced before the ld. AO by the assessee. On appeal the ld. CIT(A) directed the ld. AO to verify the certifi .....

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rohit, FCA and Shri H.V.Bhardwaj, ACA, the ld. ARs appeared on behalf of the assessee. 2.2. We have heard the ld. AR on this issue and held that in the interest of justice and fair play, this issue be restored to the file of the ld. AO to verify the certificate from Tea Board for the subsidies paid to the assessee during the assessment year under appeal and direct the ld. AO to grant exemption u/s 10(30) of the Act only to the extent of subsidies received during the year subject to production of .....

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rdingly, the ld. AO held that the same is not allowable as deduction in terms of section 36(1)(va) of the Act. On first appeal, the ld. CIT(A) deleted the addition on the ground that the provident fund dues were remitted before the due date of return of income. Aggrieved, the revenue is in appeal before us on the following ground :- 2. That on the facts and circumstances of the case, Ld.CIT(A) has erred in law in directing the A.O. to allow ₹ 2,07,337/- on account of employees contribution .....

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he contributions related to the employee and employer. However, we are not able to verify from the materials available on record as to whether the provident fund remittances were indeed made before the due date of filing the return of income by the assessee. Accordingly, we set aside this issue to the file of the ld. AO with the direction to verify the dates of remittance and if the same is paid before the due date of filing of return of income, the deduction should be granted to the assessee. T .....

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The ld.AO further stated that though the decision of the Jurisdictional High Court in AFT Industries reported in 270 ITR 167 (Cal) is favourble to the assessee on this issue, but since the Special Leave Petition (SLP) is preferred by the department against that order, relief is not granted. On first appeal the ld. CIT(A) respectfully following the Jurisdictional High Court decision deleted the addition. Aggrieved, the revenue is in appeal before us on the following ground :- 3. That on the facts .....

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ve heard the ld.AR and find that this is squarely covered by the decision of the Hon ble Calcutta High Court in the case of CIT vs AFT Industries Ltd. reported in (2004) 270 ITR 167 wherein their lordships had held as under :- In respect of computation of income of tea grown and manufactured, a fiction has been created under which both the agricultural component and the business component of the income would be assessed together for the purpose of computing the income under the Act and only afte .....

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