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TMI Blog2011 (3) TMI 1828X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the revenue is delayed by 72 days and the revenue has filed affidavit stating reasons and also stated that delay is not due to deliberate or mala fide intension of revenue. In view of this reason, we condone the delay and admit the appeal. 3. The only issue in this appeal of the revenue is against the order of CIT(A) deleting expenses of cess paid on green leaf, without considering fact that it is for agricultural operation. For this, the revenue has raised following ground No.1: 1. That on the facts and circumstances of the case, Ld. CIT(A), Kolkata has erred in law in deleting the addition of Rs.20,32,980/- on account of cess on green leaf without considering the fact that expenses on account of cess on green leaf is relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in 88 ITR 197 has held that an assessee carrying on business of cultivation and manufacture of tea is entitled to deduction of cess payable on the quantity of green leaves plucked from its plantation and consumed in manufacture of tea. 7. Respectfully following the aforesaid decision the appellant s appeal is allowed and the Assessing Officer is directed to allow deduction in respect of the aforesaid cess of Rs.15,59,663/- payable by the appellant on green leaves plucked and consumed in its manufacturing activity. 4. We find that the issue is squarely covered by the decision of jurisdictional High Court in the case of AFT Industries Ltd. (supra), wherein Hon ble High Court has held as under: Having regard to the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eductions, which are allowed in order to arrive at the total income exigible to tax, are to be allowed and the apportionment of the total income so computed is to be made. If the agricultural part of the deductions is made application for deduction from the 60 per cent of the total income so computed, in that event, this 60 per cent would be again made assessable under the Agricultural Income-tax Act which is not permissible. In that event, the purpose of creating fiction would stand frustrated. It would then be a concept completely foreign to the fiction so created. Therefore, the entire amount paid as cess on green leaf seems to be eligible for deduction with regard to which we do not find any confusion. For the aforesaid reasons, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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