9911796707
TMI Blog1980 (3) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... cal statement of the learned Authorised Representative of the assessee the orders of the lower authorities in so far as these relate to ground Nos. 2, 5, 7 and 8 in the grounds of appeal taken by the assessee before us are upheld. As a clarification it is added that ground No. 2 relates to the claim of the assessee for full relief in the paddy cultivation account, while ground No. 5 relates to the claim of the assessee regarding disallowance in cultivation expenses accounts. Ground No. 7 related to disallowance of Rs. 88,000 in the interest account, this ground has not been pressed by the learned, counsel, of course, without prejudice that is reserving the right of the assessee to agitate in appeal for other assessment years since this grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t as is apparent from the order of the ITO the disallowance has been made on estimate basis and not on facts or any material much less any evidence with the lower authorities. On his part, the ld. Departmental Representative has supported the orders of the lower authorities and ha contended that the disallowance has been justifiably made on facts and in law keeping in view the past history of the case as also the details of the expenses. 6. We have perused the orders of the lower authorities and have given due consideration to the facts of the case and feel that the disallowance on this score be restricted to Rs. 1000 which will meet the ends of justice. The assessee partly succeeds on this score. 7. As regards ground No. 3, the ITO dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has income from growing, manufacturing and selling of tea, the but expenditure was spent on simply protecting the tea estate from being occupied by the villagers. He further reasoned that it was clear that the area protected was not a planted area but the fact remained that on a part of tea estate no plantation was made, more so Baideha tea estate was entirely agricultural income since there was no factory in the said tea estate. 10. Before us, the learned Authorised Representative for the assessee has contended on the same lines as he has contended before the AAC and further contended that the nearby villagers have been encroaching upon the land i.e. the tea garden of the assessee on which the tea plantation was made and the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was an imminent threat and danger of encroachment of the tea garden of the assessee by the villagers and these were necessary for the safe-guard of the assets and for the protection of the assets, and for the plantation of the tea in the tea garden and so to say these expenses were expended for the purpose of carrying on of the business and the assessee had no benefit of enduring nature from the said expenses. The assessee having sought the Police protection to safe-guard the interest of the business, these expenses were incidental to the business and accordingly merited to be allowed as business expenditure being expended wholly and exclusively in the interest of the business and being incidental to the business. The orders of the low ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffice at Rs. 7,133 as also expenses for lubricating oil at the tea garden at Rs. 6,326; that all the expenses were fully vouched; that there was no scope for making of any disallowance. The AAC sustained the disallowance of Rs. 3,000 holding that it was reasonable disallowance in lieu of non-trading and personal expenses. The assessee got a relief of Rs. 7,000. 15. Before us, the ld. Authorised Representative of the assessee has contended on the same lines as has been contended on behalf of the assessee before the AAC, whereas the learned Departmental Representative has supported the orders of the lower authorities. We having considered the facts of the case as also having perused the orders of the lower authorities and considering the to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AAC justified the disallowance made by the ITO holding that the facts and submissions justified the disallowance. 18. Before us, the ld. Authorised Representative has contended on the same lines as has been contended before the AAC. The ld. Departmental Representative has supported the orders of the lower authorities. 19. We having considered the facts of the case as also the submissions-contentions of the parties feel inclined to accept the assessee's case that no addition on this score was called for since the ITO has not brought out any material or facts justifying the disallowance valuation of 1000 Kgs. of tea. The contention of the assessee that tea was consumed by the staff and the labourers employed by the assessee has not be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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