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TMI Blog2017 (12) TMI 1822X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Departmental Representative is whether the CIT(A) is justified in holding that the agricultural income tax paid by the assessee during the assessment years concerned can be deducted u/s 43B of the Income-tax Act. 3. Briefly stated the facts of the case are as follow:- 3.1 The assessee-company is a joint venture of Government of Kerala and Government of India. It is engaged in cultivation of oil palm and manufacture of palm oil. For the assessment years 2007-2008, 2008-2009, 2009-2010, 2010-2011 and 2012-2013, the assessee had claimed deduction under the Income-tax Act, the agricultural income tax paid during the concerned assessment years. According to the assessee since the agricultural income tax has been paid during the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee feels that the tax paid under AIT would qualify as a deduction, provided that the amount is actually paid. The argument is patently incorrect. It is to be noted that section 43B starts with the following clause" 43B Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of - (a) Any sum payable by the assessee by way of tax, duty, cess or fee, by whatever name called, under any law for the time being in force. 8. Here it can be seen that section 43B does not provide for deduction of "any" tax or duty on actual payment. Only those deductions otherwise allowable under the Income Tax Act come within the purview of section 43B. That is to say, section 43B i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only remitted back the issue to the file of the Assessing Officer to re-compute the income based on the order of the CIT(A). 3.5 The learned AR, on the other hand, relied on the findings and conclusions of the CIT(A). 4. We have heard the rival submissions and perused the material on record. Admittedly, the agricultural income is exempt from Central Income tax by virtue of provisions of section 10(1) of the Income-tax Act. When agricultural income itself is exempt from the purview of Central Income tax, there is no reason why a payment made out of agricultural income (already exempt) should be allowed as a deduction in computing the business income under the Central Income-tax Act. Section 43B states that "a deduction otherwise allowable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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