Full Judgment Text & Judicial Ruling

1986 P T D 703

1986 P T D 703

[Calcutta High Court (India)]

Before Sabyasachi Mukharji and Suhas Chandra Sen, JJ

DEBPARA TEA CO. LTD., JALPAIGURI

Versus

COMMISSIONER OF INCOME‑TAX, WEST BENGAL‑XIII, CALCUTTA

Income‑tax Reference No.51 of 1978, decided on 30th November, 1982.

Income‑tax‑-

‑‑‑Assessee‑lessee of Government land‑‑Earlier tea plantation on pare of land abandoned by assessee‑‑Expenditure on replantation on another part of land is not allowable as revenue expenditure‑ ‑Development allowance can be allowed.

M.N. Banerjee for the Assessee.

S.K. Maha for the Revenue. .

JUDGMENT

MUKHARJI, J‑‑In --‑view of the facts found by the Tribunal as recorded in the statement of the case that the assessee was a lessee having taken: ease of certain land from the Government of West Bengal on the area of 33 Acres there was tea plantation earlier which was abandoned and during the accounting period relevant to the assessment year the assessee replanted tea plants on a virgin soil of another area of 33 Acres, in our opinion the expenditure of Rupees 48, 435 incurred on such plantation could not have been allowed as revenue expenditure. The Tribunal has, however, directed that the development allowance in respect of the replacement of tea bushes should be allowed and further directed the Appellate Assistant Commissioner to take that point into consideration. If that is so, in our opinion, the Tribunal arrived at the correct decision and the question should be answered in that affirmative and in favour of the revenue.

2. Parties will pay and bear their own costs:

SEN, J.‑‑I agree.

M. B. A. Question answered in affirmative.

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