DCIT, Circle - 4, Kolkata, Kolkata V. M/s. Bhutan Duars Tea Association Ltd., Kolkata

ITA 2136/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9332 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2006-2007
• Appeal Filed On: 26-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S I BARA
• Keywords: Reasonable cause

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA () BEFORE . . . . . . . . , , , , , !'# !'# !'# !'# /AND . .. . . .. .' '' ' , $ ) [BEFORE HONBLE SRI D. K. TYAGI, JM & HONBLE SRI C . D. RAO, AM] #% #% #% #% / I.T.A NO. 2136/KOL/2010 &' '() &' '() &' '() &' '()/ // / ASSESSMENT YEAR : 2006-07 DEPUTY COMMISSIONER OF INCOME-TAX, -VS- M/S. BHUTA N DUARS TEA ASSOCIATION LTD. CIRCLE-4, KOLKATA. (PA NO. AABCB 1012 F ) ( +, /APPELLANT ) (-+,/ RESPONDENT ) FOR THE APPELLANT : SRI S. I. BARA FOR THE RESPONDENT : SRI RAVI TULSIYAN . / ORDER PER D. K. TYAGI, JM ( . . . . . . . . , , , , ) THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER PASSED BY THE LD. CIT(A), KOLKATA DATED 18.01.2010 FOR ASSESSMENT YEA R 2006-07 IN RESPECT OF DELETING THE ADDITION OF RS.8,26,252/- ON ACCOUNT OF CESS ON GREEN LEAF. 2. THE APPEAL OF THE REVENUE IS DELAYED BY 39 DAYS AND A CONDONATION PETITION HAS BEEN FILED. AFTER CONSIDERING THE RIVAL SUBMISSION S AND PERUSING THE CONDONATION PETITION, WE FIND THAT THERE IS REASONABLE CAUSE FO R NOT FILING THE APPEAL BY THE DEPARTMENT IN TIME. HENCE, WE CONDONE THE DELAY AN D THE APPEAL OF THE REVENUE IS TAKEN UP FOR HEARING. 3. BRIEFLY STATED FACTS OF THE CASE ARE THAT THE AS SESSING OFFICER OBSERVED IN THE ASSESSMENT ORDER THAT THE CLAIM OF CESS ON GREEN L EAF IS NOT AN ALLOWABLE EXPENDITURE IN VIEW OF THE DECISION OF HONBLE GAUHATI HIGH COURT PRONOUNCED IN THE CASE OF JOREHAT GROUP OF ASSAM REPORTED IN 289 ITR 422. HE ALSO OB SERVED THAT IN THE CASE OF AFT INDUSTRIES LTD. REPORTED IN 270 ITR 167 THE HONBLE KOLKATA HIGH COURT HAS ALLOWED SUCH EXPENDITURE. AGAINST THE SAID DECISION OF THE HONBLE CALCUTTA HIGH COURT, THE DEPARTMENT HAS FILED SLP BEFORE THE HONBLE SUPREME COURT AND THE FINAL JUDGMENT IS YET TO BE PRONOUNCED. THEREFORE, TO KEEP JUDICIAL C ONSISTENCY THE EXPENDITURE ON CESS ON GREEN LEAF IS BEING DISALLOWED BY THE ASSESSING OFF ICER. IN APPEAL, THE LD. CIT(A) FOLLOWING THE DECISION OF HONBLE JURISDICTIONAL HI GH COURT IN CASE OF AFT INDUSTRIES 2 LTD. REPORTED IN 270 ITR 167 DIRECTED THE AO TO ALL OW DEDUCTION OF RS.2,66,992/- AS CLAIMED BY THE ASSESSEE. AGGRIEVED BY THE SAID ORDE R, NOW THE REVENUE IS IN APPEAL BEFORE US. 4. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDE R OF THE ASSESSING OFFICER AND PRAYED BEFORE THE BENCH TO SET ASIDE THE ORDER OF T HE LD. CIT(A) AND RESTORE THAT OF THE ASSESSING OFFICER. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE MATERIAL AVAILABLE ON RECORD, WE FIND NO INFIRMITY IN THE ORDER OF THE LD. CIT(A) IN ALLOWING THE ASSESSEES CLAIM OF DEDUCTION OF RS. 8,26,252/- ON ACCOUNT OF CESS ON GREEN LEAF BY TAKING INTO ACCOUNT THAT THE ISSUE IS COVERED BY JURISDICTIONAL HIGH COURTS ORDER IN THE CASE OF AFT INDUSTRIES LTD. REPORTED IN 270 ITR 167. HENCE, THE ORDER OF T HE LD. CIT(A) IS HEREBY UPHELD. THE APPEAL OF THE REVENUE IS, THEREFORE, DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. 7. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- . . ' , $ . . , (C. D. RAO) (D. K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER ( $ $ $ $) )) ) DATED : 11 TH FEBRUARY, 2011 '/0 &12 3' JD.(SR.P.S.) . 4 -5 65(7- COPY OF THE ORDER FORWARDED TO: 1 . +, / APPELLANT DCIT, CIRCLE-4, KOLKATA. 2 -+, / RESPONDENT, M/S. BHUTAN DUARS TEA ASSOCIATION LTD ., 6 TH FLOOR, NILHAT HOUSE, 11, R. N. MUKHERJEE ROAD, KOLKATA-700 001. 3 . .& / THE CIT(A), KOLKATA 4. .& ( )/ CIT, KOLKATA. 5 . '= -& / DR, KOLKATA BENCHES, KOLKATA 5 -/ TRUE COPY, .&>/ BY ORDER, ? #2 /ASSTT. REGISTRAR .