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TMI Blog2018 (10) TMI 1385X X X X Extracts X X X X X X X X Extracts X X X X ..... k animals. As part of the programme, the GCMMF would address the typical reasons for infertility such as improper practice in calf rearing, low body weight of animals, lack of nutrition/mineral, poor health condition, lack of awareness amongst farmers about improved breeding practices etc. The expenditure was general in nature and aimed at improving the practices for better fertility amongst milk animals by addressing the issues which caused infertility. The expenditure therefore was for the purpose of its business and would not be co-relatable to any tangible returns which can be expected out of such expenditure. There is therefore no reason to believe that such expenditure was revenue in nature - Decided against revenue. - R/TAX APPE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions are not considered in these Tax Appeals. 4. Sole surviving question is in connection with the Revenue's objection in allowing the expenditure of ₹ 399.54 lacs to the assessee by way of revenue expenditure. 5. Brief facts are as under: The respondent assessee is Gujarat Co-operative Milk Marketing Federation Ltd. ['GCMMF' for short]. For the assessment year 2008-09, the assessee had filed return for income. Such return was taken in scrutiny. During the assessment, the Assessing Officer objected to the assessee's claim of expenditure of ₹ 399.54 lacs incurred towards federation improvement programme . Objections of the Assessing Officer were two fold. Firstly, he believed that the expenditure was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vement Programme [FIP] Major reasons for infertility in animals of Gujarat includes improper calf rearing, low body weight of animals, lack of important nutrition/mineral to animals, Low priority of animals for breeding activity, poor health of animals and lack of awareness among farmers regarding improved breeding practices. Considering these aspects FIR's major objectives are as under: 1. To reduce Non-Pregnant Not Even Calved Once (NPG NECO) and Non-Pregnant Dry (NPG Dry animal population from the selected villages 2. To generate database of NPG NECO animals by tagging and registration process 3. To establish information network for animal breeding activities 4. To improve overall health condition of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een carried out in each selected DCS to encourage farmers to provide nutritive feed to animals. k) AI refresher training has been provided to all AI workers www. Amul.org.in website for FIP activities. 12. The expenditure on travelling and conveyance and on lodging and boarding relate to the aforesaid activities and therefore, have been incurred wholly and exclusively for the purposes of business of the federation. 13. In the earlier years, the issue was raised and detailed submissions have been made by the Federation and then after scrutinizing, the expenditure was allowed as business revenue expenditure. 14. To substantiate incurrence of similar business expense as regular business expenses, in all the earlier asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave no hesitation in concurring. Nevertheless, since the authorities below have not in detail examined the nature of the expenditure, we have taken note of the details of the programme and the nature of activities undertaken by GCMMF through such programme. We may note that even the Assessing Officer has not cited detailed reasons as to why in his opinion the expenditure was capital in nature. We may note that the activities carried on by GCMMF under the said programme were all aimed at fertility improvement amongst milk animals. As part of the programme, the GCMMF would address the typical reasons for infertility such as improper practice in calf rearing, low body weight of animals, lack of nutrition/mineral, poor health condition, lack of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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