TMI Blog2011 (5) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... ITA No.2243/Kol/2010 (by the Revenue) (A.Yr.2002-03): 2. There is a delay of 65 days in filing of the appeal by the Revenue for which the revenue has filed a condonation petition explaining the reasons for such delay. After considering the submissions by the Revenue the delay is condoned. 3. The Revenue has taken the following grounds :- 1. That on the facts and circumstances of the case, Ld.CIT(A), Kolkata has erred in law in allowing share and shade maintenance, nursery in filling and planting tea expenses amounting to ₹ 25,14,062/- as revenue expenses instead of capital expenses held by the A.O. on the basis of the decision of the Calcutta High Court in the case of Tasati Tea Ltd. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal in nature. 5.1. On appeal the ld. CIT(A) has deleted the same by observing as under :- During the course of appellate proceedings, it was submitted by the appellant that the AO has treated expenses aggregating to ₹ 25,14,062/- as capital expenditure and has alleged that the appellant did not file any evidence to suggest that there has been no extension plantation. It was contended by the appellant that the allegation of the A.O. is contrary to the facts and evidences already on record. The appellant had filed copies of reports submitted to the Tea Board proving that there was no extension plantation. It was submitted that the shade shade maintenance expense were incurred for providing shade to the tea bushe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eplantation without any extension of the plantation area or replantation in an abandoned area, then it cannot be said to be a capital expenditure. The extension needs explanation of plantation to an additional area. An area already abandoned, if replanted would be an expansion of the area under cultivation for the previous year concerned. The maintenance of an area already under cultivation cannot be treated to be an expansion of plantation nor can it be treated to be an investment or expansion adding to the capital already invested. On the other hand, it would be maintenance of the plantation itself and, therefore, is a revenue expenditure. It was submitted by the appellant that the reports of Tea Board submitted before the AO will prove t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40,55,892/- on account of interest has been offered for tax under Rule 8. The application of rule 8 is specific to only those receipts or expenses which are a result of an integrated activity of cultivation and manufacture i.e. partly agricultural activity and partly manufacturing activity. Income on account of foreign exchange fluctuation arises out of activity that is only incidental to the cultivation of tea. Thus foreign exchange fluctuation cannot be governed by rule 8. 9.1. On appeal the ld. CIT(A) has deleted the same by observing as under :- 15. I have considered the submission of the appellant and perused the assessment order. On careful consideration of the facts, I am of the opinion that the foreign exchang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revenue is dismissed. ITA No.2053/Kol/2010 (by the assessee)(A.Yr.2004-05): 13. The assessee has raised only one issue relating to the disallowance of ₹ 25,53,863/- on account of training and education expenses. 14. The brief facts of the case are that the AO while doing the scrutiny assessment disallowed the same by observing as under :- During the course of hearing it is gathered that the assessee claimed expenses of ₹ 23,53,863/- on account of Training and education expenses under the head Employees welfare expenses account. The A/R was requested to furnish details of such expenses along with the name of the persons to whom such training was imparted and break up of expenses unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of studies Mr.Abhyuday Prashad advised the company from time to time and after his return various new techniques of management in the tea gardens as well as in the head office as advised by Mr.Prashad has substantially benefited the company and in support of this he filed copies of the certificates issued by the company to the effect that after the completion of the studies Mr.Prashad has joined the company and performed the function of an executive director. Therefore, he requested to allow the same as business expenditure. 16. The ld. DR for the Revenue relied on the orders of the Revenue authorities and further pointed out that though the assessee has submitted that Mr.Prashad is giving advice from time to time during hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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