2018 (11) TMI 1333

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....Chandran, J. The issue raised in the appeal is academic by reason of the judgment of a Division Bench in W.P.(C) No.36862/2004. The assessment years in I.T.As. Nos.932/2009, 988/2009, 1134/2009, 384/2010 & 401/2010 are 1999-2000, 1997-98, 1998-99, 2004-05 and 2002-03 respectively, all prior to assessment year 2004-05. The issue raised before the Tribunal was whether Rule 7 of the Income Tax Rules, 1962 could be applied in the case of the assessee. The assessee is a public limited company engaged in the cultivation of oil palms and production and sale of crude palm oil. The palm oil is also produced by the assessee from the palm fruit obtained from its plantations as also from local purchase. The assessee was offering the entire income as ....

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....fectly in order. The Division Bench referred to sub-rule (2) of Rule 7 and held that the market value of the agricultural produce, which in this case is the fruit grown in the assessee's plantations, with the pulp and kernel therein; has to be excluded and business income has to be computed only for the value addition made by way of the industrial process of extraction of crude palm oil. The question with respect to whether double taxation could be permitted or not was left to be considered in the Writ Petition. 4. The Writ Petition was considered and decision rendered on 31.01.2012 in Oil Palm India Ltd. v. Assistant Commissioner of Income Tax, (WP(C) No.36862/2004). Therein, the Division Bench noticed the introduction of Rules 7A and....