9911796707
TMI Blog1990 (11) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... 962, is applicable ? " Shortly stated, the facts are that from the director's report dated December 2, 1980, the Income-tax Officer found that, in this year, insurance claim receivable under hail damage insurance policy on account of severe hailstorm amounted to Rs. 3,13,410. There was a severe hailstorm in Darjeeling area on April 17, 1980, as a result of which the tea crop in the assessee's gardens was damaged. The assessee, on April 18, 1980, intimated the damage caused to the crop by the hailstorm to the insurance company, namely, Messrs. National Insurance (P.) Ltd. The insurance company admitted the claim of the assessee to the tune of Rs. 3,13,410. Before the Income-tax Officer, this amount was claimed by the assessee-company as an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance company covered agricultural as well as manufacturing operations as the amount in question was payable in respect of manufactured tea. So, the amount represented agricultural as well as business income arising out of manufacture of tea by the assessee-company. It was thus submitted that the receipt was not 100 per cent. agricultural in nature and that a part of it was income arising out of manufacture of tea and that the Income-tax Officer was right in applying rule 8(1) of the Income-tax Rules to this receipt. It was further contended that the decision of the Calcutta High Court in the aforesaid case was distinguishable on facts. The learned authorised representative for the assessee-company, on the other hand, fully supported th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fficer. At the time of hearing, learned counsel for the assessee contended that the decision in the case of B. Gupta (Tea) Pvt. Ltd. [1969] 74 ITR 337 (Cal) will clearly apply to the facts of this case. He has drawn our attention to the relevant clause of the insurance policy which provides as follows: " damage to growing tea crop of the current season on the assured's tea estate(s) as under directly attributable to hail to the extent of 50% of the agreed insured value of the crop so damaged calculated on the basis of 4 kgs. of green leaf equivalent to 1 kg. of made-tea. " This court in the aforesaid decision in the case of B. Gupta (Tea) Pvt. Ltd. [1969] 74 ITR 337, considered an identical clause which provided, inter alia, as follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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