2011 (3) TMI 1828

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....ated Nil. 2. At the outset, it is noticed that this appeal filed by the revenue is delayed by 72 days and the revenue has filed affidavit stating reasons and also stated that delay is not due to deliberate or mala fide intension of revenue. In view of this reason, we condone the delay and admit the appeal. 3. The only issue in this appeal of the revenue is against the order of CIT(A) deleting expenses of cess paid on green leaf, without considering fact that it is for agricultural operation. For this, the revenue has raised following ground No.1: "1. That on the facts and circumstances of the case, Ld. CIT(A), Kolkata has erred in law in deleting the addition of Rs.20,32,980/- on account of cess on green leaf without consider....

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....e Supreme Court decision in the case of Dehradun Company vs. CIT reported in 88 ITR 197 has held that an assessee carrying on business of cultivation and manufacture of tea is entitled to deduction of cess payable on the quantity of green leaves plucked from its plantation and consumed in manufacture of tea. 7. Respectfully following the aforesaid decision the appellant's appeal is allowed and the Assessing Officer is directed to allow deduction in respect of the aforesaid cess of Rs.15,59,663/- payable by the appellant on green leaves plucked and consumed in its manufacturing activity." 4. We find that the issue is squarely covered by the decision of jurisdictional High Court in the case of AFT Industries Ltd. (supra), wherein ....