TMI Blog2012 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... undisturbed. As per the Mining Plan the assessee will first carry out mining only in Block A. Which will last for about 7 years and then block B will be taken up for mining activity. Hence the entire payment cannot be said to be an expenditure for the said financial year. Accordingly the said amount of expenditure is restricted to 1/14 th HELD THAT- CIT (A) while confirming the order of assessing authority said that the funds are used for a natural regeneration which the assessee participates indirectly. Therefore at no point of time could it be said that the assessee had incurred a capital expenditure giving the assessee a benefit of enduring nature for the purpose of earning segmented income to render the same to income tax. The amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment was collected by the State Government as per the orders dated 30.10.2002 of the Hon ble Supreme Court. The assessee filed copy of the orders of the Supreme Court and submitted that in accordance with the orders of the supreme Court directing all Stated and Union Territories to collect the net present value from the user agencies for all land diverted for non-forest purposes at the rate varying between ₹ 5.8 lakhs to ₹ 9.2 lakhs per hectare of forest land depending upon the quantity and density of land in question diverted for non-forest purpose. A notification dated 17 th January 2004 was issued by Forest, Ecology and Environment Secretarial. As per the guidelines issued by the Government of India, vide letter darted 18/9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration. The assessee has carried on mining activity on the part of the said leased area just for 3 months and mined are to the extent of 1,29,868 tones as against the total mineable reserve of 6.03 million tonnes are, against witch mining rights the assesse has paid the said sum of ₹ 1,27,600/-. The said amount being net present value of leased are was payable on the basis of the quantity and density of the area of forest land diverted for non-forestry purpose. The payment is directly related to area of forest land leased area of 20.23 hectares for mining. Thus the assesse derived rights and enduing benefit from the said payment of ₹ 1,27,22,600/- to exploit the area of 20.23 hectares, having mineable reserve of 6.03 mil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pensation when their forests are uprooted. Therefore for this purpose, the funds are used for a natural regeneration which the assessee participates indirectly. Therefore at no pint of time could it be said that the assessee had incurred a capital expenditure giving the assessee a benefit of enduring nature for the purpose of earning segmented income to render the same to income tax. In other words, the authorities below have not pointed out the income generated against the purported deferred revenue expenditure so proposed by them in their impugned orders. The amount was incurred as a revenue expenditure and is directed to be allowed in the year it has been incurred. 4. It is not in dispute that the said payment was made as contribut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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