INCOME TAX ACT, 1961

Section 37(1)

Business expenditure - Allowability - Nursery expenses -

According to AO, the expenses incurred for nursery activity is purely agricultural in nature and, therefore, disallowed. On appeal, the CIT(A) allowed the claim of the assessee. Held: The expenses incurred by the assessee were for salaries and wages and certain other administrative expenses which in the facts and circumstances, were revenue in nature. Further, it was brought to notice that young tea bushes of the Telepara Unit were utilized as a part of uprooting and replacement programme in the existing plantation area and hence, replacement expenses incurred thereon were allowable under rule 8(2) of the IT Rules, 1962 and the expenses for maintaining nursery were also allowable as per the Tribunal's order in ITA No. 2243/Kol/2010, dt. 31-5-2011, therefore, the CIT(A)'s order did not require any interference and, hence, the order of CIT(A) was confirmed and this ground of appeal of the revenue for assessment years 2008-09 and 2009-10 was dismissed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2008-09 to 2011-12.

INCOME TAX ACT, 1961

Section 143

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