680/CBDT. - Income Tax - 680/CBDT

INSTRUCTION NO. 680/CBDT Dated : April 10, 1974 Section(s) Referred: 33A Statute: Income - Tax Act, 1961 Reference is invited to Section 33A which was introduced in the Income-tax Act, 1961 w.e.f. assessment year 1965-66 with a view to encouraging plantation of tea bushes in the country providing for development allowance in respect of planting of tea bushes on any land in India owned by an assessee who carried on business of growing and manufacturing tea in India. 2. Under the provisions of section 33A, one of the condition to be satisfied to be entitled to development allowance, is that the aforesaid business is carried on any land in India which is owned by the assessee. It has been represented to the Board that may of the tea companies hold their lands only as lease holders from State Governments. Strictly speaking as the lease holder is not the 'owner' of the land, none of the companies who are lease holders, are entitled to the benefit of development allowance. However, this interpretation is bound to cause unintended hardship to the assessees and would nullify the whole benefit sought to be given by section 33A . 3. The Board has, therefore, decided that the benefit of Section 33A may be allowed to lessees of land growing tea gardens also. 4. Necessary instructions may please be issued to all the Income-tax Officers working in each charge on the above lines for their guidance and compliance.