9911796707
TMI Blog1994 (3) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Rules, 1962, the Tribunal has not erred in allowing replantation expenses as revenue expenditure ?" The facts of the case are that the respondent carries on the business of producing, manufacturing and selling tea and is assessed under the Income-tax Act, 1961, in the status of a Hindu undivided family. During the accounting year 1984-85, the respondent incurred some expenses on replantation of tea bushes and, in the course of assessment for the assessment year 1985-86, claimed the sum as revenue expenditure. The Income0tax Officer, A-Ward, Jorhat, in his assessment. order disallowed an amount of Rs. 1,00,000 out of such expenses on plantation on the ground that the expenses were on replanting on an area en bloc which was as go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... page 1057) above for the opinion of this court. The Tribunal, however, rejected the reference application by its order dated April 21, 1993, on the ground that its order in the appeal was passed on the findings of fact and as such no question of law arose on the same. Mr. D. K. Talukdar, learned standing counsel for the Income-tax Department, submits that since the interpretation of sub-rule (2) of rule 8 of the Income-tax Rules, 1962 relating to allowance in respect of the cost of planting of bushes in replacement of bushes was involved, a question of law arose out of the order passed by the Tribunal in second appeal. He, accordingly, submitted that the Tribunal should be required to state a case on the question stated in paragraph 1 (se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the claim of the assessee was correctly allowed by the Commissioner of Income-tax (Appeals) on the facts of the case. The question of law that arose out of the aforesaid order of the Tribunal was as to whether, in view of the wording of rule 8(2) of the Income-tax Rules, 1962, the Tribunal was right in coming to the finding that the claim of the assessee was correctly allowed by the Commissioner of Income-tax (Appeals) on the facts of the case. The Tribunal's decision not to make a reference to this court was thus not correct. We, however, find that the question as framed by the Department in the reference application is not correctly worded inasmuch as it gives an impression as if the Tribunal allowed the expenses as revenue expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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