TMI Blog2020 (4) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the respective income of Tea Estates in the state of West Bengal and Assam separately and computed the income of tea estates together practice/methodology of accounting has been consistently followed by the assessee for decades - HELD THAT:- AO while giving appeal effect of the ld. CIT(A) s order for AY 2009-10 has accepted the computation of assessee (refer pages-57 of the P/B). Since we note that the assessee has been consistently following the computation of income separately for tea estates in West Bengal and Assam and computing the total income of tea estates together as per the doctrine of consistency the same ought to have been followed without disturbing the same. For that proposition we refer to the Hon ble Supreme Court s dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the shares or earning of the exempt income. In such a scenario, we hold that the disallowance at the most has to be restricted at 0.5% of the cost of investment of ₹ 4715/- i.e only at ₹ 235.75 rounded off at ₹ 236/-. This ground of assessee is partly allowed to that extent. 3. Ground no. 2 of assessee s appeal is against the action of the ld. CIT(A) in disallowing a sum of ₹ 2,22,417/- on foreign travel expenses. This ground of assessee s appeal is not pressed at the time of hearing before us by the ld.AR. The same stands dismissed. 4. Ground nos. 3(a) (b) are against the actions of the ld. CIT(A) in upholding the action of the AO in computing ₹ 5,72,991/- being profit on tea made out of purchased tea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant had bought Green Leaf from other growers and manufactured Tea therefrom. The total leaf purchased during the year was 16,30,430Kgs. The quantity of Green Leaf plucked from the Appellant's own Gardens was 1,17,51,848Kgs. Thus, the total leaf purchased, plucked and consumed by the Appellant to mci7 allack-Tea was 1,33,82,278 Kgs. The A.O. has computed profit on tea made out of green leaf purchased by the respective garden using the green leaf The profit made by the Appellant as per formula adopted by the industry, has worked out by the Appellant at ₹ 19,10,552/- including profit from purchase of black tea as mentioned above. This method has been consistently followed by the assessee all along and accepted by A.O. in earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... state of West Bengal and Assam as was done in the past. The AO has not given any finding in the assessment order as to why he has so computed the income of the appellant. He may verify from his record the computation accepted by the Department in the earlier years and adopt the same pattern of computation. However, in case he decides to deviate from the earlier practice of computation accepted by the Department he may do so after giving the appellant an opportunity and recording his reasons for deviating. 7. According to the ld. AR the Department has not made/preferred any appeal before the Tribunal for the AYs 2010-11, 2011-12 and 2012-13. According to him, the department has been consistently accepting the computation made by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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