1999 (12) TMI 46

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....siness of cultivation and sale of green tea leaves. For the assessment year 1992-93, the company submitted its return of agricultural income before respondent No. 3. In the said return, the petitioner showed a sum of Rs. 4,37,980 as an amount being payable as cess for production of green tea leaves. The Assessing Officer disallowed the said amount on the ground that the said amount was not paid du....

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.... rejected on the ground that the claim of deduction in respect of unpaid provision is not an allowable deduction either under section 8(2)(e) or section 8(2)(f)(vii) of the Agricultural Income-tax Act, 1939, for short "the Act". Section 8(2)(f)(vii) reads as follows : "(vii) any expenditure (not being in the nature of capital expenditure laid out or expended wholly and exclusively for the pu....

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.... actually paid in the accounting year shall be computed for deduction. However, there is no such identical provision in the Assam Agricultural Income-tax Act. Section 37 of the Act provides for such allowance. It is the case of the petitioner-company that they are maintaining their accounts in the mercantile system. In the above system of accounting on which the cess is payable cannot be consid....