DCIT, Circle - 4, Kolkata, Kolkata V. M/s. Dholai Tea Co. Pvt. Ltd., Kolkata

ITA 992/KOL/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 2490 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2010
• Appeal Filed By: Department
• Bench Allotted: B
• Assessment Year: 2003-2004
• Appeal Filed On: 13-05-2010
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH - B , KOLKATA ( ) BEFORE . . , SHRI B.R.MITTAL, JUDICIAL MEMBER. /AND . . , , SHRI K.K.GUPTA, ACCOU NTANT MEMBER. / I.T.A.NO. 992 AND 993/KOL/2010 / ASSESSMENT YEAR S 2003 - 04 AND 2004 - 05 DCIT, CIRCLE 4, KOLKATA. - - - VERSUS - . M/S. DHOLAI TEA CO. PVT.LTD., 33A, J.L.NEHRU ROAD, 16 TH FLOOR, KOLKATA 700 071. AAACD 9301 Q ( / A PPELLANT ) ( / RESPONDENT ) / FOR THE APPELLANT : / S MT. JYOTI KUMARI, DR / FOR THE RESPONDENT : NONE / ORDER . . , SHRI B.R.MITTAL, JUDICIAL MEMBER. THESE APPE ALS FILED BY THE REVENUE AGAINST ORDERS DT.4.12.2009 AND DT.4.12.2009 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) FOR THE ASSESSMENT YEARS 2003 - 04 AND 2005 RESPECTIVELY INVOLVES COMMON ISSUE AND THEREFORE, THEY WERE HEARD TOGETHER AND ARE NOW DISPOSED OF T HIS COMMON FOR THE SAKE OF CONVENIENCE . 2. THE ONLY ISSUE, WHICH IS COMMON IN BOTH THE APPEALS, IS AS REGARDS TO THE DELETION OF THE ADDITION OF RS.14,55,630 IN THE ASSESSMENT YEAR 2003 - 04 AND RS.6,23,865 IN THE ASSESSMENT YEAR 2004 - 05 BEING THE CESS ON GR EEN LEAF PAID BY THE ASSESSEE. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE - RESPONDENT. WE HAVE HEARD THE LEARNED DR AND PERUSED THE IMPUGNED ORDERS OF THE AUTHORITIES BELOW. 4. BEFORE US, T HE LEARNED DR SUPPORTED THE ORDERS OF THE ASSESSING OFFICER AND RE LIED ON THE DECISION OF HONBLE GUAHATI HIGH COURT IN THE CASE OF JOREHAUT GROUP LTD. VS. ASSISTANT COMMISSIONER OF INCOME TAX(2007) 289 ITR 422 (GAU) WHEREIN, THEIR LORDSHIPS HAVE HELD THAT CESS ON GREEN TEA LEAVES IS TO BE ALLOWED ON 100 PER CENT COMPOSI TE INCOME BEFORE APPLYING R. 8 OF THE IT RULES. 2 5. HOWEVER, W E OBSERVE THAT THE LEARNED CIT(A) HAS DELETED THE IMPUGNED ADDITION MADE IN BOTH THE ASSESSMENT YEAR UNDER CONSIDERATION, RELYING ON THE DECISION OF HONBLE CALCUTTA HIGH COURT IN THE CASE OF COM MISSIONER OF INCOME TAX VS. A.F.T. INDUSTRIES LTD. (2004) 270 ITR 167 (CAL) , WHEREIN THEIR LORDSHIPS HAVE HELD THAT THE ENTIRE AMOUNT PAID AS CESS ON GREEN LEAF IS ELIGIBLE FOR DEDUCTION WHILE COMPUTING THE INCOME UNDER RULE 8 AND AFTER THAT APPORTIONMENT IS REQUIRED TO BE MADE . LAW IS WELL SETTLED THAT THE DECISION OF JURISDICTIONAL HIGH COURT IS BINDING UNLESS THE CONTRARY IS AVAILABLE FROM ANY JUDGMENT OF THE APEX COURT. THE LEARNED DR COULD NOT BRING BEFORE US ANY DECISION OF HONBLE SUPREME COURT CONTR ARY TO THE DECISION OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CIT V. AFT INDUSTRIES LTD (SUPRA). THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT THE SAID DECISION OF HONBLE JURISDICTIONAL HIGH COURT STILL HOLDS AS GOOD LAW TO BE FOLLOWED BY THE TR IBUNAL AS WELL AS SUBORDINATE COURT S COMING UNDER THE JURISDICTION OF THE JURISDICTIONAL HIGH COURT. THEREFORE, THE LEARNED CIT(A) HAVING DELETED THE IMPUGNED ADDITION IN BOTH THE ASSESSMENT YEAR UNDER CONSIDERATION BY FOLLOWING THE DECISION OF HONBLE JUR ISDICTIONAL HIGH COURT, WE DO NOT FIND ANY INFIRMITY IN THE IMPUGNED ORDERS OF THE LEARNED CIT(A). ACCORDINGLY, W E UPHOLD THE SAME AND DISMISS BOTH THE APPEALS OF THE REVENUE. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. THIS ORDER IS PRONOUNCED IN OPEN COURT ON DT. 12.07.2010 SD/ - SD/ - ( . . ) , , (K.K.GUPTA ), ACCOUNTANT MEMBER. ( . . ), ( B.R.MITTAL ), JUDICIAL MEMBER ( ) DATE : 12.07.2010 ( /) H.K.PADHEE / SNR.PRIVATE SECRETARY. 3 - COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT : M/S. DHOLAI TEA CO. PVT.LTD., 33A, J. L.NEHRU ROAD, 16 TH FLOOR, KOLKATA 700 071. 2 / THE RESPONDENT - DCIT, CIRCLE 4, KOLKATA. 3. / THE CIT, 4. ( )/ THE CIT(A), 5. / DR, KOLKATA BENCH 6. GUARD FILE . / TRUE COPY , / BY ORDER , / DEPUTY REGISTRAR .