2001 (6) TMI 19

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....SIMHA BABU J. -The assessee is a company which carries on the business of manufacturing and sale of tea. It had claimed development allowance under section 33A of the Income-tax Act for the assessment year 1982-83 at the rate of Rs.35,000 per hectare, the rate at which that allowance could be claimed for the assessment year 1982-83. That claim was negatived by the Assessing Officer on the ground t....

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..... That decision of the Kerala High Court was subsequently confirmed in appeal by the Supreme Court in CIT v. Kilkotagiri Tea and Coffee Estate Co. Ltd. [1996] 219 ITR 249. The apex court in that decision pointed out that development allowance under section 33A may be given in a subsequent year and that allowance cannot be limited only to the year in which the expenditure was actually incurred o....

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.... cost of planting. The court further went on to hold that there is nothing in section 33A to suggest that development allowance for expenditure incurred in respect of the first two years must be calculated and claimed at the very first stage, that is, at the stage of the second year of assessment after planting of tea bushes. The claim for allowance is to be in accordance with the rate at which....