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TMI Blog2001 (6) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... cturing of tea. It had claimed development allowance under s. 33A of the IT Act for the asst. yr. 1982-83 at the rate of Rs.35,000 per hectare, the rate at which that allowance could be claimed for the asst. yr. 1982-83. That claim was negatived by the AO on the ground that the assessee had cleared and planted the estate in the years 1977-78 and 1979-80 and in those years the development allowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court in CIT vs. Kilhotagiri Tea and Coffee Estate Co. Ltd. (1996) 133 CTR (SC) 70: (1996) 219 ITR 249 (SC): TC S28.2926. The apex Court in that decision pointed out that development allowance under s. 33A may be given in a subsequent year and that allowance cannot be limited only to the year in which expenditure was actually incurred or the immediate next year thereafter. The Court o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere is nothing in s. 33A to suggest that development allowance for expenditure incurred in respect of the first two years must be calculated and claimed at the very first stage, that is, at the stage of the second year of assessment after planting of tea bushes. 3. The claim for allowance is to be in accordance with the rate at which such claim can properly be made in the year in which the clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessments in which the activity in relation to which the claim has been made had been undertaken in the earlier years. The Tribunal was, therefore, correct in the view it took and the question referred to us: "Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the assessee is entitled for the claim for deduction under s. 33A(7), proviso (ii), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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