TaxTMI 
TaxTMI 
2012 (5) TMI 757
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....doned. 3. The revenue has taken the following grounds :- "That on the facts and circumstances of the case, Ld. CIT(A), Kolkata has erred in law in directing the A.O. to treat sundry receipts of ₹ 56,10,000/- as business income without appreciating the fact that the assessee at the same time claims 60:40 division u/s. 8 on the same income which it already had shown under the head 'miscellaneous income'. 2. That on the facts and circumstances of the case, Ld CIT(A), Kolkata has erred in law in deleting the addition of ₹ 30,54,824/- 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 ....
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....ct narrated by A.O. and submission made by appellant as above. As per A.O. Rule 8 is not applicable in cases an income has to be generated directly from growing and manufacturing and hence he has considered income shown as sundry receipts as central income. Appellant on the other hand has submitted that all the income shown as sundry receipt is directly attributable to the growing and manufacturing of the tea which includes sale of tea waste, sale of store items and scrap, sale of uprooted tea bushes. Since the receipt is generated in the ordinary business of cultivation processing and sale of tea and is directly connected with the cultivation of the same, the income will form integral part of the business and hence it will qualify Under Ru....
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....s of the sundry receipts earned by assessee company in the relevant A.Yr. are as under :- Sale of Scrap 3,55,084 Sale of Stores 52,740/- Sale of waste 4,46,760/- Sale of Firewood (Uprooted Plants) 45,82,173 Insurance Claim Received (against damage of labour Qrs) 3,05,971 8.1. On careful perusal of the above, it is observed that the major amount is relating to the sale of firewood (uprooted plants) amounting to ₹ 45,82,173/- which is apparently relating to the tea industry. Keeping in view of the fact we find in the order of ld. CIT(A) who has deleted an amount of ₹ 56,10,000/- made by AO. Therefore we confirm the order of ld. CIT(A) and dismiss the appeal of revenue on this issue. 9. In the result ground no.1 of the ....