TaxTMI 
TaxTMI 
2020 (5) TMI 258
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....and in the circumstances of the case the Hon'ble ITAT is right in allowing claim of exemption u/s. 10(30) of the Income Tax Act for holding that the provisions of section 10(30) of the I.T. Act is not applicable to the assessee's case though there is no Central government Notification for Special Purpose Tea Fund Scheme? 3) The CIT(A) failed to consider the decision of Apex Court in M/s. Liberty India vs. Commr. of Income Tax, Karnal wherein it was held "DEPB/Duty Drawback are incentives which flow from the Schemes framed by Central Government or from Section 75 of the Customs Act, 1962, hence, incentives profits are not profits derived from the eligible business u/s. 80IB. They belong to the category of ancillary profits of such Undertakings which squarely applies to the instant case. 4) The CIT(A) failed to consider the fact that the Assessing Officer has made the disallowance of loss from floral extraction, operation expenditure amounting to Rs. 41,77,944/- relying on the decision of the Hon'ble Madras High Court in the case of CIT vs. Soundarya Nursery and Uttarakhand High Court in CIT vs. Green Gold Tree Farmers P. Ltd. 4. The first common ground, Ground No.1 is general i....
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.... 76.78 lakhs by way of sale of import license, which was included in the other operating income of Rs. 363.36 lakhs. The Assessing Officer held that this income was an incentive and not an income derived out of export of tea. The Assessing Officer held that merely because VKUY/DEPB is a scheme for promoting tea export, it cannot be said that sale of such VKUY/DEPB can be occurred out of such export of tea. According to the Assessing Officer, provisions of section 28(iiia) are applicable to sale of import license. Therefore, the Assessing Officer added 100% of the sale of import license to central income tax. 13. Before the CIT(A), the assessee contended that the DEPB/VKUY licenses were obtained by the company due to a scheme for promoting tea exports and hence, is an integral part of the plantation operations of the company. It was submitted that the assessee-company undertakes export taking into consideration the import license benefits. Therefore, the benefits are clearly part of the tea income. It was submitted that the assessee had not claimed the income as exempt incopme (agricultural income) but as a part of the combined operations and hence, the assessee was correct in tre....
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....ut of the assessee's business operations, but has arisen out of assessee's agriculture business of growing rose and extraction of rose oil, the loss so claimed against business income was disallowed. Thus, the loss of Rs. 41,77,944/- claimed as deduction against income chargeable under the head business and profession was disallowed. 19. Before the CIT(A), the assessee submitted that the floral extraction process includes various processes which comprise of plucking of flowers to the final stages of extraction process. Hence, based on technical estimation the management had arrived at the proportion of process to be regarded as direct agricultural as 75% and the quantum of extraction process was to be regarded as 25%. After considering the submission of the assessee, the CIT(A) deleted the disallowance of Rs. 13,92,648/-. 20. Against this, the Revenue is in appeal before us. The Ld. DR relied on the grounds raised. 21. The Ld. AR submitted that the floral extraction process includes floral extraction process includes various processes which comprise of plucking of flowers to the final stages of extraction process. Hence, based on technical estimation the management had arrived a....
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....stem support to Tata Global Beverages Ltd. - 9.08 lakhs. ii) Income from tea and soil analysis - 1.12 lakhs iii) Scrap Sale - 33.88 lakhs iv) Miscellaneous income from electricity - 1.49 lakhs v) Other miscellaneous income - No such classification found. For the assessment year 2013-14, since the amounts mentioned above were covered by the decision of the Tribunal (supra), the CIT(A) gave relief of Rs. 45.57 lakhs out of the addition of Rs. 142.73 lakhs made by the AO. The balance amount of Rs. 97.16 lakhs was confirmed. 26. Similarly for assessment year 2014-15, the assessee treated the sum of Rs. 206.74 laksh as exempted income. However, the Assessing Officer treated the sum of Rs. 38.42 lakhs as other exempted income under Rule 8 and balance amount of Rs. 168.32 lakhs was treated as taxable income. 27. On appeal, the CIT(A) gave relief to the tune of Rs. 58.67 lakhs out of the addition of Rs. 168.32 lakhs made by the AO. The balance amount of Rs. 109.65 lakhs was confirmed. 28. Against this, the assessee is in appeal before us. The Ld. AR submitted that the company is engaged in various kinds of operational as well as non operational activities, including agricultura....
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....ecovery of software installation charges 5.75 - One time income from installation of in-house developed plantation software at the plantations in Munnar of Tata Consumers Products Limited - directly relating to tea operation. 15. Tea Board grant for organic compost manure 5.00 - Subsidy received from Tea Board of India for Tea Operations. 16. Refund of Insurance premium 0.26 - Refund out of insurance premium mainly paid for Tea Operations. 17. Refund of excess compensation under workmen compensation 0.31 - Refund mainly out of compensation paid relating for Tea operations. 18. Profit on sale of goods 6.41 - Relating to sale of miscellaneous goods in Tea Operations. 19. Recovery of estate road maintenance charges 3.55 3.35 Recovery from transporters for use/damage to plantation roads. Maintenance expense of plantation roads are treated as expense of tea operations 20. Fringe benefits to estate labours recovered 7.06 7.29 Recovery of employee related cost - direct tea operations. 21. Grant received for providing noon meal to Estate school children 8.66 3.43 Grant receipts against expenditure relating to noon meal assistance taken as tea operation....