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TMI Blog2016 (2) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... was justified in law in deleting the addition of cess on green leaf for an amount of Rs. 56,92,991/- when cess is payable only on production of green leaf which is 100% agricultural activity and not an admissible deduction under income chargeable to tax and more so when judgment reported in 289 ITR 422 is completely in favour of addition? The facts and circumstances leading up to the instant appeal are as follows:- The assessee company is engaged in the business of growing, manufacture and sale of tea. The assessee filed return for the assessment year 1999-2000 which was assessed under Section 143(1) by the assessing officer. Subsequently, the assessing officer reopened the case under Section 147 on the ground that the cess on green leaf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as if it were income derived from business, and forty per cent of such income shall be deemed to be income liable to tax. (2) In computing such income an allowance shall be made in respect of the cost of planting bushes in replacement of bushes that have died or become permanently useless in an area already planted, if such area has not previously been abandoned 11[, and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (30) of section 10, is not includible in the total income." Mr. Das learned Advocate appearing for the assessee relied on the judgement of this Court in the case of AFT Industries (supra) which has been approved by the Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under the Act, all deductions as are available both for the agricultural component and for the business component of the income are to be allowed as a natural corollary to the fiction so created. Such deductions, which are allowed in order to arrive at the total income exigible to tax, are to be allowed and the apportionment of the total income so computed is to be made." In M/s. Apeejay Tea Co. (supra), the Revenue unsuccessfully assailed the order of this Court in AFT Industries Ltd. (supra), the Supreme Court dismissed the appeal and upheld the view taken by this Court. In Jorehaut Group Ltd. -Vs- Assistant Commissioner of Income-Tax reported in (2007) 289 ITR 422, the Gauhati High Court followed the view expressed in Assam Co. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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