2011 (9) TMI 1134

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ccountant Member) This appeal is filed by the Revenue against the order dated 17.03.2011 of the CIT(A)-Central-I, Kolkata pertaining to A.Yr. 2007-08. 2. The sole issue raised by the Revenue in this appeal is relating to deletion of disallowance of Rs. 1,75,78,282/- towards Cess payable by the assessee company to the State Government on cultivation of green tea leaves. 3. The brief facts ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....icultural income. Only 40% of the composite income is chargeable to Income-tax u/s 28 of the IT Act, 1961. However it is observed that the assessee company claimed the entire expenditure of Rs. 1,75,78,282/- before applying the provisions of Rule-8. Under these circumstances, the proportionate claim for deduction of Cess on green leaf against the non-agricultural component of the composite income ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion in computing the composite income under Rule 8 of I.T. Rules. This issue is, therefore, decided in favour of the assessee and against the Revenue by upholding the order of the C.I.T.(A) who has allowed the deduction of payment of cess on green leaves in computing the composite income from tea business of the assessee under rule 8 of the I.T. Rules. We may further mention that identical issue w....