2012 (1) TMI 248

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....ion of Rs. 1,63,53,280/- on account of cess on green leaf without considering the fact that expenses on account of cess on green leaf is related to 100% agricultural operation and SLP is pending before the Hon'ble Supreme Court against the decision of Calcutta High Court in the case of AFT Industries Ltd. -vs- CIT (270 ITR 167) in the light of which Ld. CIT(A) decided the issue in favour of the assessee. 2. That on the facts and circumstances of the case, Ld. CIT(A), Kolkata has erred in law in deleting the disallowance of Rs. 12,87,900/- on account of notional interest on sticky loan not accounted for though the A.O. has added it back on the basis of note on account -24D of the Annual report. 3. That on the facts and circ....

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.... of CIT vs Kovai Maruthi Papers & Board Pvt. Ltd. 294 ITR 57 (Mad). We find no infirmity in the orders of the ld. CIT(A) to be interfered with. We confirm the same and dismiss ground no.5 of the revenue's appeal. 6. The only other issue is relating to ground no.4 in respect of deletion of disallowance of Rs. 10,00,000/- . 7. The relevant observations of the AO as well as the ld. CIT(A) on this issue are as under :- "Expenditure towards community development :- The assessee has debited a sum of Rs. 10,00,000/- under the head "Other Repairs" on account of payment made to a nongovernment organization for construction of an auditorium in Sonari, Assam towards community development in the area where the Company's tea gardens are s....