TMI Blog2020 (5) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company undertakes exports taking into consideration the import license benefits. Therefore, the import licenses benefits are clearly part of the tea income. The assessee company has not claimed the income as exempt income (agricultural income) but as a part of the combined operation and hence the CIT(A) was correct in treating the said income as tea income as per Rule 8. - ITA Nos.23 And 24/Coch/2020, ITA Nos.25 And 26/Coch/2020 - - - Dated:- 12-3-2020 - S/Shri Chandra Poojari, AM And George George K., JM For the Assessee : Ms. Rohini VenooThampy, CA For the Revenue : Shri Mritunjaya Sharma, Sr. DR ORDER PER CHANDRA POOJARI, AM: These two cross appeals are directed against the different orders of the CIT(A) and pertain to the assessment years 2013-14 and 2014-15 . 2. Since the issues involved in these appeals are common, they were heard together and are being disposed of by this common order. ITA No.23/Coch/2020:Revenue s Appeal:A.Y. 2012-13 ITA No.24/Coch/2020:Revenue s Appeal:A.Y. 2014-15 3. First we shall take up the Revenue s appeals in ITA Nos.23 24/Coch/2020 for the assessment years 2012-13 and 2014-15. The Revenue ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty in the findings of the CIT(A) to take a contrary view. Even if the provisions of Section 10(30) of the I.T. Act is not applicable, since the subsidy is given for replantation, replacement planting and rejuvenation planting of the tea business, it can be only termed as a capital receipt and not as a revenue receipt. For the aforesaid reasons, we confirm the order of the CIT(A) and reject the ground no. 1 raised by the Revenue in ITA No.131/Coch/2017. 8. Against this, the Revenue is in appeal before the Tribunal for both the assessment years. The Ld. DR relied on the grounds raised. 9. The Ld. AR relied on the order of the CIT(A). 10. We have heard the rival submissions and perused the material on record. In our opinion, the CIT(A) has not committed any error in allowing the appeals of the assessee by following the earlier order of the Tribunal in assessee s own case in ITA Nos.77,78 91/Coch/2017 dated 14/01/2018 for the assessment years 2010- 11 to 2012-13. Being so, we do not find any infirmity in the order of the CIT(A) and the same is confirmed. Thus, this ground of appeals of the Revenue is dismissed. 11. The next common ground is with regard to treating of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal for both the assessment years. The Ld. DR relied on the grounds raised. 15. The Ld. AR relied on the order of the CIT(A). 16. We have heard the rival submissions and perused the material on record. In our opinion, the CIT(A) has not committed any error in allowing the appeals of the assessee by following the earlier order of the Tribunal in assessee s own case in ITA Nos.131, 163 164/Coch/2017 dated for the assessment years . Being so, we do not find any infirmity in the order of the CIT(A) and the same is confirmed. Thus, this ground of appeals of the Revenue is dismissed. 17 The next common Ground is with regard to deletion of addition of ₹ 13,92,648/- being share of loss from floral extraction operation expenditure claimed as central income. 18. The facts of the issue are that the Assessing Officer disallowed the share of loss from floral extraction operation expenditure claimed as deduction from central income stating that the entire income from operations is to be regarded as agricultural income. The Assessing Officer held that the loss incurred by the assessee from floral extraction operation cannot be equated with its operation of earning t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Y. 2013-14 ITA Nos. 26/Coch/2020 : Assessee s Appeal: A.Y. 2014-15 23. The assessee has raised the following common ground of appeals except for variation in figures: The Ld. CIT(A) erred in not allowing ₹ 97.16 lakhs as income from Tea Operations. The CIT(A) ought to have held that such income being in the nature of Insurance claim, discount from suppliers, cattle fee recoveries, electricity work income, old balances written off, estate cost recoveries etc. derived from operations of cultivation of tea is assessable as per Rule 8 of the Income Tax Rules. 24. The facts of the issue as narrated in ITA No.25/Coch/2020 are that during assessment year 2013-14, the assessee had credited ₹ 235.71 lakhs as other non-operating income (net of excise duty of ₹ 8.57 lakhs) during the current year. The Assessing Officer treated the sum of ₹ 264.25 lakhs as non operating income Out of this, the assessee has taken benefit of Rule 8 and claimed as exempt income. The Assessing Officer observed that out of ₹ 264.25 lakhs,, a sum of ₹ 121.52 lakhs was non operating exempted income. Therefore, he brought into tax ₹ 142.73 lakhs . 25. Befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Advance received for electricity work transferred to income 18.42 - Relating to Tea Operations allowed by ITAT. Electricity Income allowed as deduction under section 80IA by Hon. High Court of Kerala 3. Old balance written off 11.99 - Relating to Tea Operations allowed by ITAT. Electricity Income allowed as deduction under section 80IA by Hon. High Court of Kerala 4. Recovery of providing systems service to TGBL - 10.08 Covered by ITAT order for AY 2010-11, 2011-12 and 2012-13 5. Sale of firewood Grown in the Estate - 39.32 From sale of firewood grown in the plantation for use in Tea Manufacturing factories directly relating to tea operations. Expenditure for firewood planting is treated as tea operations expenses. 6. Insurance Claim 7.84 5.74 Relating to loss arising to assets in Tea Operations all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18. Profit on sale of goods 6.41 - Relating to sale of miscellaneous goods in Tea Operations. 19. Recovery of estate road maintenance charges 3.55 3.35 Recovery from transporters for use/damage to plantation roads. Maintenance expense of plantation roads are treated as expense of tea operations 20. Fringe benefits to estate labours recovered 7.06 7.29 Recovery of employee related cost direct tea operations. 21. Grant received for providing noon meal to Estate school children 8.66 3.43 Grant receipts against expenditure relating to noon meal assistance taken as tea operations. 22. Profit of sale of Fixed Assets - 7.64* Income from Sale of Assets already considered in the return of income along with Net loss on sale of assets added to income (*Rectification filed and rectified in the order gi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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