M/s.Tamarapally Rubber Co P. Ltd, Kottayam V. The ACIT,Circle, Kottayam

ITA 249/COCH/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 2265 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-09-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 24-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A S BINDHU
• Assessee Lawyers: SONY MATHEW
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJAR I, AM & SHRI GEORGE GEORGE K, JM ITA NO. 249 /COCH/201 8 : ASST.YEAR 2011 - 2012 M/S. THAMARAPALLY RUBBER COMPANY LIMITED ANCHERIL BANK BUILDING BAKER JUNCTION KOTTAYAM 686 001. PAN : AAACT7592D . VS. THE ASST.COMMISSIONER OF INCOME TAX, CIRCLE - 1 KOTTAYAM. (APPELLANT) (RESPONDENT) APPELLANT BY : SRI. SONY MATHEW RESPONDENT BY : SMT.A.S.BINDHU DATE OF HEARING : 05.09.2018 DATE OF PRONOUNCEMENT : 06 .09.2018 O R D E R PER GEORGE GEORGE K., JM THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST CIT(A)S ORDER DATED 22.03.2018. THE RELEVANT ASSESSMENT YEAR IS 2011 - 2012. 2. THE SOLITARY ISSUE THAT IS RAISED IN THIS APPEAL IS WHETHER THE CIT(A) IS JUSTIFIED IN DISALLOWING THE COST OF PLANTING AND MAINTENANCE OF IMMATURE RUBBER PLANTS. 3. BRIEFLY STATED THE FACTS OF THE CASE ARE AS FOLLOW: - 3.1 THE ASSESSEE IS A COMPANY, ENGAGED IN RUBBER PLANTATION. FOR THE ASSESSMENT YEAR 2011 - 2012, RETURN OF ITA NO. 24 9 / COCH /201 8 . M/S. THAMARAPALLY RUBBER CO. LTD. 2 INCOME WAS FILED ON 19.06.2012 DECLARING A TOTAL INCOME OF RS. 55,34,210 . ASSESSMENT U/S 143(3) OF THE I.T.ACT WAS COMPLETED VIDE ORDER DATED 29.01.2014 AS SESSING THE TOTAL INCOME OF RS. 64,23,690 . IN COMPLETING THE ASSESSMENT, THE A.O. DISALLOWED THE CLAIM OF DEDUCTION MADE BY THE ASSESSEE ON ACCOUNT OF MAINTENANCE OF IMMATURE RUBBER PLANTS. 4. AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE PREFERRED AN APPEAL TO THE FIRST APPELLATE AUTHORITY. THE CIT(A) CONFIRMED THE VIEW TAKEN BY THE ASSESSING OFFICER IN MAKING DISALLOWANCE OF EXPENDITURE ON ACCOUNT OF MAINTENANCE OF IMMATURE RUBBER PLANTS. THE CIT(A) FOLLOWED THE JUDGMENT OF THE HONBLE KE RALA HIGH COURT IN THE CASE OF REHABILITATION PLANTATIONS LTD. V. CIT [(2012) 251 CTR 343 (KERALA)] . 5. THE ASSESSEE BEING AGGRIEVED BY THE ORDER OF THE CIT(A), HAS FILED THE PRESENT APPEAL BEFORE THE TRIBUNAL. THE LEARNED AR FAIRLY SUBMITTED THAT THE ISSUE IN QUESTION IS SQUARELY COVERED AGAINST THE ASSESSEE BY THE JUDGMENT OF THE HONBLE KERALA HIGH COURT IN THE CASE OF REHABILITATION PLANTATIONS LTD. (SUPRA) . THE LEARNED DEPARTMENTAL REPRESENTATIVE WA S HEARD ON THE ISSUE. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY IN THIS CASE THE EXPENDITURE INCURRED IS NOT FOR INFILLING IN YIELDING AREA. THE EXPENDITURE HAS BEEN INCURRED FOR MAINTENANCE OF IMMATURE RUBBER PLANTS IN REPLANTED AREAS AND SUCH EXPENDITURE COULD NOT BE ALLOWED ITA NO. 24 9 / COCH /201 8 . M/S. THAMARAPALLY RUBBER CO. LTD. 3 AS DEDUCTION GOING BY THE DICTUM LAID DOWN BY THE HONBLE KERALA HIGH COURT IN THE CASE OF REHABILITATION PLANTATIONS LTD. (SUPRA) . IN VIEW OF THE JUDGMENT OF THE HONBLE KERALA HIGH COURT (SUPRA), WE HOLD THAT THE ORDER OF THE CIT(A) IS CORRECT AND IN ACCORDANCE WITH LAW AND NO INTERFERENCE IS CALLED FOR. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON THIS 06 TH DAY OF SEPTEMBER, 2018 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K. ) ACCOUNTANT MEMBER JUDICIA L MEMBER COCHIN ; DATED : 06 TH SEPTEMBER, 2018 . DEVDAS* COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) KOTTAYAM . 4. THE PR. CIT KOTTAYAM . 5. THE DR, ITAT, COCHIN 6. GUARD FILE.