TMI Blog2003 (2) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... which the nursery is being maintained, then, it seems that it is definitely a revenue expenditure for the maintenance of the plantation for the purpose of carrying on the business itself. It is not an investment of fresh capital unless it is utilised for the purpose of expanding the plantation. - - - - - Dated:- 26-2-2003 - Judge(s) : D. K. SETH., MAHARAJ SINHA. JUDGMENT D.K. SETH J.-The following question was referred for our answer: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding the view that the provisions of rule 8(2) were applicable to the case of the assessee and that the allowance by way of deduction be granted?" Learned counsel for the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reply, has contended that in the absence of any materials as to whether these plants raised in the nursery are used for expansion of the plantation, no definite conclusion can be arrived at. Therefore, the matter requires to be remitted for taking appropriate decision. After having heard learned counsel for the parties, it appears that the facts are not in controversy. The plants are being raised within the plantation area where the plants became dead or useless. It is also not in controversy that the area in which the nursery is being maintained is not an abandoned area, namely, it was within the plantation area the plants whereof were either dead or useless. All along the assessee had claimed that the plants raised in the nursery were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for replantation of dead or useless bushes within the plantation area does not come under rule 8(2). It is the replantation of dead or useless bushes within the plantation area that comes within the scope and ambit of rule 8(2). This cannot be extended to a stage prior to the actual replacement or replantation. Therefore, we are unable to answer the question in the affirmative in favour of the assessee. We answer the question in the negative in favour of the Revenue. But, however, we are not inclined to interfere with the order allowing the expenditure of Rs. 4,68,615 as a revenue expenditure, though on different grounds, inasmuch as if the plants are raised and maintained in a nursery for being utilised for the purpose of replantation wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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