2015 (6) TMI 427

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....ollowing reasons; "3.1. The assessee incurred a sum of Rs. 14,78,231 on ucalyptus tree plantation. The assessee is a manufacturer of papers. The course of manufacture of papers entails pollution by chimncys offluent discharge and use of chemicals. The paper factory is basically based on forest wood.As ba and trees are used in the paper industries the ecological and environmental balances are destroyed, it was laid down in the national Forest Policy of 1988 that all forest based industries must take up plantation so that forest ecology is maintained. The discharge of effluent water used in manufacture causes erosion of land in the catchment areas. Plantation of tree is one of the methods of controlling atmospheric pollution. The pla....

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....e final. Following the reasons given by the CIT in his order for the asst.year 1993-94 and the reasons given in the asst.order for the asst.year 1996-97, I disallow the sum of Rs. 14,78,231." The C.I.T.(Appeals) however, reversed the order disallowing the expenditure holding that the expenditure was allowable under Section 37. In an appeal from the order of the C.I.T.(Appeals) preferred by the revenue, the Appellate Tribunal concurred with the views of the C.I.T.(Appeals). The revenue has once again come up in appeal proposing the following questions; "a) Whether in the facts and in the circumstances of the case, the Learned Income Tax Tribunal erred in law in not appreciating that the payments under VRS inures long term advanta....