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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 ..... assessee. - ITA No. 269 of 2009 - - - Dated:- 2-2-2016 - Girish Chandra Gupta And Asha Arora, JJ. For the Petitioner : Mr. Ranjan Sinha, Adv For the Respondent : Mr. Siddharth Das, Adv JUDGMENT Girish Chandra Gupta, J. The revenue has come up in appeal against an order dated 24th April, 2009 passed by the ITAT- C Bench, Kolkata, in ITA No.1724/KOL/2008 to 1727/KOL/2008. The relevant assessment year is 1999-2000. The solitary question of law which arises for determination in the instant case is as follows:- Whether on the facts and in the circumstances of the case the Tribunal was justified in law in deleting the addition of cess on green leaf for an amount of ₹ 56,92,991/- when cess is payable only on prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned CIT(A) by an order dated 25th June 2008 deleted the addition made by the assessing officer. In doing so, the learned CIT(A) took note of the judgment of this court in CIT -Vs- AFT Industries Ltd reported in 270 ITR 167. The revenue appealed unsuccessfully before the Tribunal. The revenue is, once again, in appeal before this Court. To fully appreciate the rival contentions it is necessary to reproduce Rule 8 of the Income Tax Rules, 1962, which reads as follows:- Income from the manufacture of tea. 8. (1) Income derived from the sale of tea grown and manufactured by the seller in India shall be computed as if it were income derived from business, and forty per cent of such income shall be deemed to be incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld as follows:- 3 it appears that in respect of computation of income of tea grown and manufactured, a fiction has been created under which both the agricultural component and the business component of the income would be assessed together for the purpose of computing the income under the Act and only after the computation of the total income, the apportionment is to be made detennining 60% as agricultural income as 40% as eligible to tax under the Act. During the process of the computation, all deductions allowable at the time of computation are to be allowed and that was rightly allowed When by fiction the income is computed as an income under the Act, all deductions as are available both for the agricultural component and for the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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