9911796707
TMI Blog2017 (8) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer on account of sugarcane development expenses. 2. The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 2. The brief facts qua the issue of disallowance on account of sugar cane development expenses are that the assessee company is engaged in the business of manufacturing of white crystal sugar. The Assessing Officer noted that the assessee has credited an amount of Rs. 3,33,752/- on account of agricultural income and has debited an amount of Rs. 73,51,878 on account of 'cane development expenses'. He observed that in the assessment year 2006-07, the Assessing Officer has held that the claim of expenses against the agricultural income cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llotment of command area of every sugar industry which generally consists of villages located in the vicinity of 10 to 15 KMs of the sugar industry. As per the instruction of State Government, every sugar industry has to carry out cane development activities in the command area allotted to a sugar industry/ company by the State Government for procurement of the sugar cane produced by the farmers on their individual land or on the agricultural land owned by other farmers. In order to support sugar industry even the Central Government has created sugar development fund and recognizes the need for cane development activities provided by the sugar industry to the farmers. Apart from that it was submitted that, the cane development expenses have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er in a very summarily manner has disallowed the expenses on the ground that it is relatable to agricultural income shown by the assessee at Rs. 3,33,752/-. On the other hand the facts which has been discussed by the Learned CIT(Appeals), it is seen that the 'cane development expenses' has nothing to do with the agricultural income shown by the assessee from its agricultural land, albeit it is an expenditure incurred for the development of the farmers of the command area allotted to the assessee company by the State Government for procurement of the sugar cane produced by the farmers on their own land which are in the vicinity of 10 to 15 kilo meters of radius of the assessee's factory. These expenses include payments on account of seeds, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
