2013 (1) TMI 1047 - AT - Income Tax

ITAT judgment: Revenue's appeal partially allowed, one assessee's appeal allowed, one dismissed.

Rehabilitation Plantations Ltd Versus The Deputy Commissioner of Income-Tax, Circle-1, Kollam and The Assistant Commissioner of Income-Tax, Circle-1, Kollam Versus Rehabilitation Plantations Ltd.  

The ITAT partially allowed the revenue's appeal, allowed one of the assessee's appeals, and dismissed the other. The judgment was pronounced on ... - Issues Involved: The judgment involves appeals related to the assessment year 2007-08, with both parties challenging the order passed by the Ld. CIT(A) against the assessment order u/s 143(3) of the Act, and the assessee filing an additional appeal against the revision order passed by the Administrative Commissioner u/s 263 of the Act.Deduction of Replantation Expenses under Rule 7A: The issue of deduction of replantation expenses under Rule 7A was decided against the assessee by the Hon'ble jurisdictional Kerala High Court, leading to the order of the assessing officer being upheld over that of the Ld. CIT(A).Income from Sale of Field Latex: The dispute regarding income from the sale of field latex involved the assessing officer's rejection of the assessee's workings due to the lack of separate books of account, resulting in a computation of income from the sale of purchased latex. The ITAT directed the AO to reexamine the issue considering the workings furnished by the assessee.Determination of WDV of Assets for Depreciation: The ITAT set aside the Ld. CIT(A)'s decision on the determination of the Written Down Value (WDV) of assets for depreciation, instructing the AO to reevaluate the issue in light of a decision by the Hon'ble Supreme Court.Nature of Income from Sale of Firewood and Jackfruit Tree: The disagreement over the nature of income derived from the sale of firewood and jackfruit trees was resolved in favor of treating it as gain assessable u/s 45 of the Act, following a directive from the Hon'ble Kerala High Court.Revision Order Passed by Administrative Commissioner: The ITAT upheld the revision order passed by the Administrative Commissioner, emphasizing the importance of the AO's application of mind on pertinent issues to avoid an erroneous assessment prejudicial to the interests of the revenue.In conclusion, the ITAT partially allowed the revenue's appeal, allowed one of the assessee's appeals, and dismissed the other, pronouncing the judgment on 22-01-2013.