2011 (2) TMI 86

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....the appeal preferred by the appellant against an order dated 29-3-2000, passed by CIT, West Bengal-II, Calcutta for the assessment year 1995-96 under section 263 of the Income-tax Act, 1961. 2. A Division Bench of this Court by order dated 18-8-2003 formulated the following questions of law in this appeal for hearing : "(a)  Whether in computing the composite income derived from sale of tea grown and manufactured by the assessee Cess payable under the Assam Agricultural Income-tax Act on green tea leaves is allowable as a business expenditure in computing the composite income under Rule 8 of the Income-tax Rules, 1962?  (b)  Whether the condition precedent for the exercise of the owner under section 263 of the Income....

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....ed as deduction by the Assessing Officer in the assessment. 4. Being dissatisfied, the assessee preferred an appeal before the Income-tax Appellate Tribunal and the said Tribunal, by the order impugned herein, has dismissed the appeal by affirming the order of the Commissioner of Income-tax invoking his power under section 263 of the Act. 5. Dr. Pal, the learned senior Advocate appearing on behalf of the appellant, has contended before us that there was no justification of initiating the proceeding under section 263 of the Act as the condition laid down for invocation of such provision was not reflected in the order under section 263 of the Act. Dr. Pal contends that the order of the Gauhati High Court, relied upon by the Assessing Of....