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TMI Blog2014 (1) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... it is noticed that the appeal filed by revenue is delayed by 12 days and revenue has filed condonation petition. As the assessee has not challenged the delay in its written submission and we are satisfied about the reasonableness explained by Ld. CIT (DR), we condone the delay and admit this appeal. 3. The first issue in this appeal of revenue is against the order of CIT(A) deleting the addition made on account of cess on green leaf. For this, revenue has raised following ground no.1:- "1. That on the facts and circumstances of the case, Ld. CIT(A) erred in law in deleting the addition of Rs.1,51,61,248/- on account of cess on green leaf without considering the fact that expenses on account of cess on green leaf is related to 100% agricu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso covered in assessee's own case by Tribunal's decision in ITA No.2248/K/2010 for AY 2006-07 but he placed reliance on assessment order. We have gone through the Tribunal's decision as well as the order of CIT(A) for this assessment year and find that this issue is covered in favour of assessee and based on that the addition is deleted. Taking a consistent view, we confirm the order of CIT(A) on this issue and revenue's ground of appeal is dismissed. 7. The next issue in this appeal of revenue is as regards to the order of CIT(A) deleting the disallowance of depreciation on plant and machinery purchased out of amount withdrawn from NABARD. For this, revenue has raised following ground no.3:- "3. That on the facts and circumstances of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written submission has relied on sub-section (1) of section 14A of the Act, which reads as under: "From the language of sub-section (1) of section 14A, it is crystal clear that the disallowance u/s. 14A is required to be made while computing the total income under chapter IV of the Income Tax Act, 1961 whereas the computation of book profit is under chapter XIIB and hence section 14A has no implication in the computation of book profit u/s. 115JB." 11. We find from the written submission of assessee wherein it has relied on the decision of Hon'ble Madras High Court in the case of CIT Vs. Kovai Maruthi Papers and Board Pvt. Ltd. 294 ITR 57. We find that the Ld. CIT(DR) stated that this issue is covered in favour of assessee by Tribunal's d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition and we confirm the same. This issue of revenue's appeal is also dismissed. 13. Coming to Cross Objection filed by assessee. The issue regarding disallowance u/s. 40A read with Rule 8D of the I. T. Rules, 1962. For this, assessee has raised following ground no.1: "1. For that the Ld. CIT(A) confirmed the disallowance made by the Ld. AO u/s. 14A of the Income-tax Act 1961 read with rule 8D of the Income-tax Rules, 1962 although the Ld. AO did not establish the nexus of expenditure incurred with the earning of exempted income." 14. The assessee itself disallowed the sum and the AO recorded this fact as under:- "Expenditure on Exempted Income : As per Tax Audit Report a sum of Rs.45,28,096 is disallowable u/s. 14A r.w.r. 8D and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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