1996 (7) TMI 62

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....erence under section 256(1) of the Income-tax Act, 1961 (for short the " Act "), at the instance of the assessee, the following question has been referred by the Income-tax Appellate Tribunal, Guwahati, for opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the regeneration expenditure of Rs. 4,70,615 incurred by your....

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.... the saplings of trees of various species at vacant places pursuant to the terms of the lease. The assessee claimed Rs. 8,58,554 towards the regeneration expenses as revenue expenditure. According to the Assessing Officer, the expenditure incurred towards creation of Rudrakasha plantation, creation of central nursery, avenue plantation was purely agricultural in nature and, as such, he disallowed ....

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....ppeal before the Income-tax Appellate Tribunal. The Tribunal also held that the expenditure incurred towards creation of plantation, nursery, etc., could not be considered as revenue expenditure. According to the Tribunal, growing of trees and selling the timber after getting them felled and replanting the trees at these places and other vacant places were for enduring benefit. Accordingly, the Tr....