TaxTMI 
TaxTMI 
2018 (4) TMI 400
X X X X Extracts X X X X
X X X X Extracts X X X X
....id by the assessee for a period of three years treating the same as capital expenditure. 3. The assessee in the present case is a company which is engaged in the business of cultivation and manufacture of tea. The return of income for the year under consideration was filed by it on 30.10.2002 declaring a loss of Rs. 7,70,024/-. In the profit and loss account filed along with the said return, a sum of Rs. 30,000/- was debited by the assessee on account of expenditure incurred for getting pollution control certificate. Since the said certificate was valid for three years, the A.O. held that the expenditure incurred by the assessee for the same was capital expenditure having enduring benefit. He, therefore, disallowed the said expenditure. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....I have heard the arguments of both the sides and also perused the relevant material available on record. The limited contention raised by the learned counsel for the assessee on this issue is that the claim of the assessee for deduction on account of share transaction expenses is deserved to be considered by the A.O. under the head capital gains and the A.O. may accordingly be directed to consider the same on merit. I accordingly direct the A.O. to consider the claim of the assessee for deduction on account of share transaction expenses alternatively under the head capital gain on merit. Ground No. 2 of the assessee's appeal is accordingly treated as allowed. 8. The issue raised in Ground No. 3 relates to the addition of Rs. 6,85,314/- m....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd matter may be sent back to the A.O. for such verification. I find merit in this contention of the learned counsel for the assessee and since the learned DR has not raised any objection in this regard, I restore this issue to the file of the A.O. for deciding the same afresh after verifying the claim of the assessee that there was no outstanding amount payable on account of provident fund. Ground No. 3 is accordingly treated as allowed for statistical purposes. 11. The issue raised in Ground No. 4 relates to the addition of Rs. 1494668/- made by the A.O. and confirmed by the Ld. CIT(A) on account of disallowance of cultivation expenses. 12. The claim of the assessee for deduction on account of cultivation expenses amounting to Rs. 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d for the existing plantation and not for any extension. I find merit in this contention of the learned DR. This issue is accordingly restored to the file of the A.O. for deciding the same afresh after verifying the documentary evidence claimed to be filed by the assessee in the form of annual return submitted to the Tea Board. Ground No. 4 is accordingly treated as allowed for statistical purposes. 14. In Ground No. 5, the assessee has challenged the action of the authorities below in not treating 40% of its interest income as income from the business of cultivation and manufacture of tea under Rule 8 of Income Tax Rules, 1963. 15. In the profit & loss account filed along with the return, a sum of Rs. 68,157/- was credited by the ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the Income Tax Act, 1961. 18. During the year under consideration, the assessee-company had earned a dividend income of Rs. 7,09,093/- which was claimed to be exempt under section 10(33) of the Act. No disallowance on account of expenditure incurred in relation to the earning of the said income however was offered by the assessee as required by section 14A of the Act. Although it was contended on behalf of the assessee before the A.O. that no expenditure was incurred by it for earning the dividend income, the A.O. did not accept the same for the elaborate reasons given in the assessment order. He also pointed out certain specific indirect expenses incurred by the assessee which were partly attributed to the activity of earning of divi....