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TMI Blog2011 (7) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... tment [ITA No.1441/Kol/2010] 4. Ground no.1 taken by the department is as under:- "That Ld.CIT(A) has erred in law as well as in facts in deleting the addition of Rs.7,06,500/- being disallowance of expenditure for preparation of Maps claimed by the assessee without considering that the benefit of incurring such expenditure is enduring in nature and is not a recurring expenditure." 5. The Assessing Officer has stated that the assessee debited an amount of Rs.7,06,500/- under miscellaneous expenses on account of payment for preparation of Maps. The Assessing Officer has stated that the said expenses have been incurred on account of extensive survey of entire tea area including detailed mapping of every corner of the plantation and other buildings. Thus, the contention of the assessee that this survey has not formed any asset is not acceptable in view of the inherent advantage associated with the availability of such a detailed map. The Assessing Officer has further stated that the assessee submitted that this exercise has been undertaken after almost 15 years. Therefore, the Assessing Officer has stated that the benefit derived is enduring in nature and added ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer is justified to add it to the income of the assessee. 10. On the other hand, the learned Authorised Representative for the assessee referred to page nos. 7-8 of the assessee's paper book and submitted that the assessee got prepared maps of tea garden on the Grants and Patta lands. It was never submitted that this exercise has been taken after 15 years. He submitted that the amount was paid towards bill raised by Govt. Approved Land Surveyor and Valuers of Panchavati, Jorhat(Assam). Thus, the payment of their bills and the expenses are revenue in nature as preparation of maps does not form in fixed assets. 11. We have carefully considered the rival submissions of the learned representatives of both the parties and have perused the copies of page nos. 7-8 of the assessee's paper book. We agree that the said payment aggregating to Rs.7,06,500/- paid by the assessee is wholly and exclusively for the purpose of its business and it does not form/create any assets. The said expenditure is revenue in nature. Therefore, we uphold the order of the learned Commissioner of Income tax (Appeals) by rejecting the ground no.1 taken by the department. This ground o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aff effective from April, 2000 and on the basis of the said memorandum of understanding Assessee had made the Payments of Arrear wages. Therefore, I don't agree with the AO that the liability crystallized on 28.03.2001, where as the same was crystallized on 22/08/2001 well within the current financial year. I had also carefully considered the various judgments referred by the Assessee and accordingly don't find any merit while disallowing a sum of Rs.601,885/- on account of Arrear wages and therefore direct the AO to delete the addition/disallowance." 17. Hence, the department is in appeal before the Tribunal. 18. At the time of hearing before us the learned Departmental Representative has supported the order of the Assessing Officer. On the other hand, the learned Authorised Representative for the assessee has reiterated the same submissions as made before the learned Commissioner of Income-tax (Appeals). He further referred to pages 9-17 of the paper book, which are the copies of Circular No.73 in respect of Revision of pay scales for sub-staff dated 22-8-2001. 19. We have carefully considered the rival submissions of learned representatives of both the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - : A detail sheet of expenses incurred towards uprooting the jungle plants is annexed hereto and marked with the letter "F'. and in this respect your petitioner states that entire expenses incurred towards uprooting the jungle wholly and exclusively for the business of the Company. Irrigation Rs.737,525/- : A detail sheet of expenses incurred towards irrigation is annexed hereto and marked with letter "G" and in this regard your Appellant states that expenses incurred towards irrigation is wholly and exclusively for the business of the company. All the aforesaid addition and disallowances during the year made by the Ld. A.O treating the same as capital in nature where as from the details of the expenses your good self will find that expenses incurred by petitioner towards labor wages and cost of high speed diesel oil and the same are in revenue in nature not in capital in nature as claimed by the Ld. A.O. Therefore, the aforesaid addition and/or disallowance out of the cultivation expenses are liable to be deleted." 24. Learned Commissioner of Income-tax (Appeals) considered the above submissions of the assessee and held that the said expenses are not capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tea Co. Ltd. (supra) supports the stand taken by the assessee that these expenses are revenue in nature and not on capital account. Hence, we uphold the order of the learned Commissioner of Income-tax (Appeals) by rejecting ground no.3 of revenue's appeal. This ground of the revenue is dismissed. 28. Ground no.4 of revenue's appeal is as under:- "That ld. CIT(A) has erred in law as well as on facts, in deleting the addition of Rs.12,60,320/- being cess on green leaf only in view of the decision of Hon'ble Calcutta High Court pronounced in the case of AFT Industries Ltd. [270 ITR 167] without considering that the revenue has filed SLP against that order and finality in this case has not arrived yet." 29. We observe that the learned Commissioner of Income-tax (Appeals) has deleted the disallowance made by the Assessing Officer by following the decision of the Hon'ble Calcutta High Court in the case of AFT Industries Ltd. reported in [(2004) 270 ITR 167]. Hence, there is no reason to interfere with the order of the learned Commissioner of Income-tax (Appeals). Therefore, we uphold the same by rejecting ground no.4 taken by the department. This ground of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer. On the other hand, learned Authorised Representative for the assessee has relied on the order of the learned Commissioner of Income-tax (Appeals). He also referred to pages 23-26 of the asessee's paper book, which are the copies of bills and letters addressed to Pollution Control Board evidencing the payment of Rs.37,090/- as pollution control fee. He submitted that the said expenditure is a revenue expenditure. 37. On consideration of the facts of the case and nature of expenses that the said payment was made by the assessee for water and air pollution for the year 2001-02. We hold that the said expenditure is revenue in nature and the learned Commissioner of Income-tax (Appeals) is justified to delete the addition made by the Assessing Officer. Therefore, we uphold the order of the learned Commissioner of Income-tax (Appeals) by rejecting this ground taken by the department. Ground no.5 taken by the department is dismissed. 38. Ground no.6 of revenue's appeal is as under:- That ld. CIT(A) has erred in law as well as in facts in deleting the addition of Rs.3,77,186/- being disallowance of expenditure on account of foreign travel expenses w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of business, but was for his personal purposes. He submitted that the action of the Assessing Officer be confirmed. 44. On the other hand, the learned Authorised Representative relied on the order of the learned Commissioner of Income-tax (Appeals). He referred to page nos. 28- 37 of the paper book and submitted that the assessee had made export in the FY relevant to the AY under consideration through recognized export houses. He further submitted that visit of Sri C.K. Pasari, whole time director of the assessee company was to various foreign countries to explore business opportunities. He submitted that the issue could be restored to the Assessing Officer to verify the above facts that the assessee made exports to overseas countries in the A.Y under consideration. 45. In view of the facts and considering the submissions of learned representatives of both the parties, we set aside the orders of the authorities below and restore the issue to the Assessing Officer with the direction that he will verify the issue as to whether foreign visit undertaken by the assessee of Sri C.K. Pasari, whole time director of the assessee company was for the business purpose or for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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