DCIT, Circle - 4, Kolkata, Kolkata V. M/s. The Grob Tea Co. Ltd., Kolkata

ITA 2246/KOL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 9254 (ITAT-KOLKATA)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 22-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S I BARA
• Keywords: Set aside

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH C, KOLKATA ( ) BEFORE , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . . , SHRI C.D.RAO, ACCOUNTANT MEMBER / ITA NO.2246/KOL/2010 !' #$ / ASSESSMENT YEAR : 2004-05 ( %& / APPELLANT ) DY. COMMISSIONER OF INCOME TAX , CIRCLE-4, KOLKATA. - ! - - VERSUS - . ( '(%& / RESPONDENT ) M/S. THE GRAB TEA CO. LTD., KOLKATA. [PAN: AABCT 3475C] %& ) * / FOR THE APPELLANT : SHRI S. I. BARA '(%& ) * / FOR THE RESPONDENT : NONE + / ORDER . . , PER C.D.RAO, A. M. THIS APPEAL IS FILED BY REVENUE AGAINST THE ORDER D ATED 20.09.2010 OF LD. CIT(A)-IV, KOLKATA PERTAINING TO ASSESSMENT YEAR 2004-05. ITA NO.2246/KOL/2010 2 2. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR THER E IS ANY APPLICATION FOR ADJOURNMENT. WE, THEREFORE, DECIDED TO DISPOSE OF THE APPEAL AFT ER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE AND THE MATERIAL AVAILABLE ON RECORD . 3. IN THIS APPEAL THE REVENUE HAS RAISED THE FOLLOWING GROUND OF APPEAL :- THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, LD. CIT(A), KOLKATA HAS ERRED IN LAW IN DELETING THE ADDITION OF RS.13,39,0 34/- ON ACCOUNT OF CESS ON GREEN LEAF WITHOUT CONSIDERING THE FACT THAT EXPENS ES ON ACCOUNT OF CESS ON GREEN LEAF IS RELATED TO 100% AGRICULTURAL OPERATIO N AND SLP IS PENDING BEFORE THE HONBLE SUPREME COURT AGAINST THE DECISION OF C ALCUTTA HIGH COURT IN THE CASE OF AFT INDUSTRIES LTD. VS CIT (270 ITR 167) IN THE LIGHT OF WHICH LD. CIT(A) DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE. 4. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSES SING OFFICER WHILE DOING THE SCRUTINY ASSESSMENT DISALLOWED AN AMOUNT OF RS.13,39,034/- O N ACCOUNT OF CESS ON GREEN LEAF BY OBSERVING THAT ASSESSEE COMPANY IS ENGAGED IN GROWI NG, MANUFACTURING AND SALE OF TEA. IN THE BOOKS OF ACCOUNT, IT HAS DEBITED CESS ON GREEN LEAF FOR AN AMOUNT OF RS.13,39,034/-. CESS ON GREEN LEAF IS TOTALLY RELATED TO AGRICULTURAL INCOM E. BESIDES THIS, ON THIS ISSUE, DEPARTMENT HAS PREFERRED SLP BEFORE THE HONBLE APEX COURT. THEREF ORE, THIS AMOUNT IS DISALLOWED AND ADDED BACK. 4.1. ON APPEAL, LD. CIT(A) DISALLOWED THE SAME BY R ESPECTFULLY FOLLOWING THE ORDER OF HONBLE CALCUTTA HIGH COURT IN THE CASE OF AFT IND USTRIES LTD. VS CIT (270 ITR 167). 5. THE LD. DEPARTMENTAL REPRESENTATIVE APPEARING ON BEHALF OF THE REVENUE RELIED ON THE ORDER OF THE ASSESSING OFFICER. 6. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CAREF UL PERUSAL OF THE MATERIALS AVAILABLE ON RECORD, KEEPING IN VIEW OF THE FACT THAT THE ISSUE IS CONCLUDED BY THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. AF T INDUSTRIES LTD. 270 ITR 167 (CAL.), WHERE THE AMOUNT PAID AS CESS WAS HELD AS ELIGIBLE FOR DE DUCTION IN COMPUTING THE COMPOSITE INCOME UNDER RULE 8 OF I.T. RULES. THIS ISSUE IS, THEREFO RE, DECIDED IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE BY UPHOLDING THE ORDER OF THE L D. CIT(A), WHO HAS ALLOWED THE DEDUCTION OF PAYMENT OF CESS ON GREEN LEAVES IN COMPUTING THE COMPOSITE INCOME FROM TEA BUSINESS OF THE ITA NO.2246/KOL/2010 3 ASSESSEE UNDER RULE 8 OF THE I.T. RULES. WE MAY FU RTHER MENTION THAT IDENTICAL ISSUE WAS THE SUBJECT MATTER OF APPEAL BEFORE THE TRIBUNAL IN THE CASE OF M/S. EMPIRE PLANTATIONS (INDIA) LTD. AND THE TRIBUNAL VIDE ORDER DATED 28.2.2005 IN I.T. A. NO.1600 (KOL) OF 2004 FOR ASSESSMENT YEAR 2000-01 HAS ALLOWED THE CLAIM OF THE ASSESSEE. 6.1. THE FACT THAT THE SLP IS PENDING BEFORE THE HONBLE SUPREME COURT AGAINST THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN RESP ECT OF AFT INDUSTRIES LTD. VS. CIT (270 ITR 167) WILL NOT HAVE ANY EFFECT SINCE THE HONBLE APE X COURT HAS NEITHER SET ASIDE THE ORDERS OF THE HONBLE CALCUTTA HIGH COURT NOR GRANTED ANY STA Y. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. + , - ,! . / ORDER PRONOUNCED IN THE COURT ON 23. 03. 2011. SD/- SD/- [ , ] [ . .. . . .. . , ,, , ] [MAHAVIR SINGH ] [ C. D. RAO ] JUDICIAL MEMBER ACCO UNTANT MEMBER ( ) DATED : 23. 03. 2011. + ) '5 65# / COPY OF THE ORDER FORWARDED TO: 1. DY.COMMISSIONER OF INCOME TAX, CIRCLE-4, P-7, CHOW RINGHEE SQUARE, 8 TH FLOOR, KOLKATA700 069. 2 M/S. THE GRABTEA CO. LTD., 15-B, HEMANTA BASU SARA NI, KOLKATA-700 001. 3. THE CIT, 4. THE CIT(A)-IV, KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA ( 5 ' / TRUE COPY, [KKC 78 !9: ; /SR.PS] + !, / BY ORDER, DEPUTY /ASST. REGISTRAR ITAT, KOLKATA BENCHES.