TMI Blog2001 (6) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of tea. It had claimed development allowance under section 33A of the Income-tax Act for the assessment year 1982-83 at the rate of Rs.35,000 per hectare, the rate at which that allowance could be claimed for the assessment year 1982-83. That claim was negatived by the Assessing Officer on the ground that the assessee had planted and replanted the estate prior to April 1, 1982, and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in CIT v. Kilkotagiri Tea and Coffee Estate Co. Ltd. [1996] 219 ITR 249. The apex court in that decision pointed out that development allowance under section 33A may be given in a subsequent year and that allowance cannot be limited only to the year in which the expenditure was actually incurred or the immediate next year thereafter. The court observed that the very definition of the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o suggest that development allowance for expenditure incurred in respect of the first two years must be calculated and claimed at the very first stage, that is, at the stage of the second year of assessment after planting of tea bushes. The claim for allowance is to be in accordance with the rate at which such claim can properly be made in the year in which the claim was made. The assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the activity in relation to which the claim has been made had been undertaken in earlier years. The Tribunal was, therefore, correct in the view it took and the question referred to us 'Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the assessee is entitled for the claim for deduction under section 33A(7), proviso (ii), of the Act as amende ..... X X X X Extracts X X X X X X X X Extracts X X X X
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