CIT v. Tasati Tea Ltd.

NEW CHUMTA TEA COMPANY LTD.,KOLKATA vs. D.C.I.T., CIRCLE-4(2), KOLKATA, KOLKATA

In the result, the appeal of the assessee is partly allowed

Bench: Shri Rajesh Kumar, Hon’Ble & Shri Sonjoy Sarma, Hon’Bleassessment Year: 2015-16 New Chumta Tea Company Limited Dcit, Circle-4(2), Kolkata Mc Leod House, 2Nd Floor, 3, Netaji Vs. Subhas Road, Kolkata-700001. Pan: Aabcr 2629 G (Appellant) (Respondent) Present For: Appellant By : Shri Sanjay Bhattacharya, Fca Respondent By : Shri B.K. Singh, Jcit, Sr. Dr Date Of Hearing : 01.08.2023 Date Of Pronouncement : 30.10.2023 O R D E R Per Sonjoy Sarma, Jm: This Appeal Of The Assessee For The Assessment Year 2015-16 Is Directed Against The Order Dated 25.11.2022 Passed By The Ld. Commissioner Of Income-Tax, Appeals, Nfac, Delhi [Hereinafter Referred To As ‘The ‘Ld. Cit(A)’]. The Assessee Has Raised The Following Grounds Of Appeal:

…ent year on the same issue. The ld. AR further submits that Hon’ble Jurisdictional High Court as well as ITAT held that expenses on nurseries and young tea maintenance should be considered as revenue expenditure in following cases: “i. CIT vs Tasati Tea Ltd. (262 ITR 388 Cal) ii. Dy. CIT vs Binaguri Tea Co. Pvt. Ltd. (ITA No. 366 and 367/Kol/2011 oder dated 04.01.2012-ITAT, Kolkata.” 6. On the basis of above decision rendered by the Jurisdictional High Court and Hon’ble Kolkata Tribunal, the disallowance of Rs. 30,01,809/- expenditure on account of maintenance of young tea 4 New Chumta Tea Company Limited A.Y.…

DCIT, CIR. 4(1), KOLKATA vs. M/S ANDREW YULE & CO. LTD, KOLKATA

In the result, appeal of the revenue is partly allowed for statistical purposes

Bench: Shri Sanjay Garg, Hon’Ble & Dr. Manish Borad, Hon’Ble

…accordingly, the expenses claimed by the assessee company was allowed as revenue expenditure. We note that the Ld. CIT(A) while giving relief to the assessee has relied on the Hon’ble Calcutta High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon’ble High court has held as under: “As we understand from the expression used in Rule 8(2), it applies only in respect of replacement of useless or dead plants in an area, which is already under cultivation and not abandoned earlier. It cannot be stretched to a stage prior to the replacement of the useless or dead bushes. Th…

DCIT, CIRCLE - 4(1), KOLKATA, KOLKATA vs. M/S. ANDREW YULE & CO. LTD., KOLKATA

In the result, the appeal of the revenue is treated as partly allowed for statistical purpose

Bench: Shri P.M. Jagtap, Vice- & Shri S.S. Viswanethra Ravi

…ITA No. 525/KOL/2019 Assessment Year: 2005-2006 M/s. Andrew Yule & Co. Limited IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA ‘B’ BENCH, KOLKATA Before Shri P.M. Jagtap, Vice-President & Shri S.S. Viswanethra Ravi, Judicial Member I.T.A. No. 525/KOL/2019 Assessment Year: 2005-2006 Deputy Commissioner of Income Tax,.......................................Appellant Circle-4(1), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, 8th Floor, Kolkata-700069 -Vs.- M/s. Andrew Yule & Co. Limited,..............................................Respondent 8, Dr. Rajendra Prasad Sarani, Kolkata-700001 [PAN: AACCA4245Q] Appeara…

DCIT, CIRCLE - 4(1), KOLKATA, KOLKATA vs. M/S. ANDREW YULE & CO. LTD., KOLKATA

In the result, this ground of the We find no infirmity in such a claim

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2002-03 Assessment Year: 2003-04 Assessment Year: 2003-04

…elief to the assessee has relied on the Hon'ble Calcutta the Ld. CIT(A) while giving relief to the assessee has relied on the Hon'ble Calcutta High Court decision in the case of Tasati Tea Ltd. High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon'ble High court has held as under: wherein the Hon'ble High court has held as under: "As we understand from the expression used in Rule 8(2), it applies only in "As we understand from the expression used in Rule 8(2), it applies only in "As we understand from the expression used in Rule 8(2),…

DCIT, CIRCLE - 4(1), KOLKATA, KOLKATA vs. M/S. ANDREW YULE & CO. LTD., KOLKATA

In the result, this ground of the We find no infirmity in such a claim

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2002-03 Assessment Year: 2003-04 Assessment Year: 2003-04

…elief to the assessee has relied on the Hon'ble Calcutta the Ld. CIT(A) while giving relief to the assessee has relied on the Hon'ble Calcutta High Court decision in the case of Tasati Tea Ltd. High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon'ble High court has held as under: wherein the Hon'ble High court has held as under: "As we understand from the expression used in Rule 8(2), it applies only in "As we understand from the expression used in Rule 8(2), it applies only in "As we understand from the expression used in Rule 8(2),…

DCIT, CIRCLE - 4(1), KOLKATA, KOLKATA vs. M/S. ANDREW YULE & CO. LTD., KOLKATA

In the result, this ground of the We find no infirmity in such a claim

Bench: Sri J. Sudhakar Reddy & Sri Aby T. Varkey) Assessment Year: 2002-03 Assessment Year: 2003-04 Assessment Year: 2003-04

…elief to the assessee has relied on the Hon'ble Calcutta the Ld. CIT(A) while giving relief to the assessee has relied on the Hon'ble Calcutta High Court decision in the case of Tasati Tea Ltd. High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon'ble High court has held as under: wherein the Hon'ble High court has held as under: "As we understand from the expression used in Rule 8(2), it applies only in "As we understand from the expression used in Rule 8(2), it applies only in "As we understand from the expression used in Rule 8(2),…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S. GOODRICKE GROUP LTD., KOLKATA

In the result, appeal of the revenue is dismissed

Bench: Shri Aby T Varkey , Jm &

…ims. The CIT(A) accepts assessee's argument as follows:- "The ARs of the appellant have filed a detailed submission explaining the nature of expenses and the method of accounting followed in respect of nursery expenses. The ARs have cited decision reported in 262 ITR 388 (Calcutta High Court) in the case of CIT Vs. Tasati Tea Company Ltd. The submissions of the appellant are reproduced as under:- 'The appellant maintains nursery in its gardens for the purpose of replanting and planting of tea bushes in an area where the tea bushes are dead or became useless or in an area previously abandoned and also for extensi…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S ANDREW YULE & COMPANY LTD., KOLKATA

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…company was allowed as revenue expenditure. We note that the Ld. CIT(A) while giving relief to the Andrew Yule & Co. Ltd., AYs- 2008-09, to 2011-12 assessee has relied on the Hon’ble Calcutta High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon’ble High court has held as under: “As we understand from the expression used in Rule 8(2), it applies only in respect of replacement of useless or dead plants in an area, which is already under cultivation and not abandoned earlier. It cannot be stretched to a stage prior to the replacement of the useless or dead bushes. T…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S ANDREW YULE & COMPANY LTD., KOLKATA

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…company was allowed as revenue expenditure. We note that the Ld. CIT(A) while giving relief to the Andrew Yule & Co. Ltd., AYs- 2008-09, to 2011-12 assessee has relied on the Hon’ble Calcutta High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon’ble High court has held as under: “As we understand from the expression used in Rule 8(2), it applies only in respect of replacement of useless or dead plants in an area, which is already under cultivation and not abandoned earlier. It cannot be stretched to a stage prior to the replacement of the useless or dead bushes. T…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S ANDREW YULE & COMPANY LTD., KOLKATA

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…company was allowed as revenue expenditure. We note that the Ld. CIT(A) while giving relief to the Andrew Yule & Co. Ltd., AYs- 2008-09, to 2011-12 assessee has relied on the Hon’ble Calcutta High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon’ble High court has held as under: “As we understand from the expression used in Rule 8(2), it applies only in respect of replacement of useless or dead plants in an area, which is already under cultivation and not abandoned earlier. It cannot be stretched to a stage prior to the replacement of the useless or dead bushes. T…

DCIT, CIR-4, KOLKATA, KOLKATA vs. M/S ANDREW YULE & CO. LTD., KOLKATA

In the result, the appeal of revenue for AY 2008-09 is dismissed and the appeals of revenue for AYs 2009-10, 2010-11 and 2011-12 are partly allowed for statistical purpose as directed above

Bench: Shri P.M. Jagtap & Shri A. T. Varkey, Jm]

…company was allowed as revenue expenditure. We note that the Ld. CIT(A) while giving relief to the Andrew Yule & Co. Ltd., AYs- 2008-09, to 2011-12 assessee has relied on the Hon’ble Calcutta High Court decision in the case of Tasati Tea Ltd. Vs. CIT (2003) 262 ITR 388 (Cal) wherein the Hon’ble High court has held as under: “As we understand from the expression used in Rule 8(2), it applies only in respect of replacement of useless or dead plants in an area, which is already under cultivation and not abandoned earlier. It cannot be stretched to a stage prior to the replacement of the useless or dead bushes. T…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S. GOODRICK GROUP LTD., KOLKATA

Bench: Shri S.S.Godara & Dr. A.L. Saini

…ims. The CIT(A) accepts assessee’s argument as follows:- “The ARs of the appellant have filed a detailed submission explaining the nature of expenses and the method of accounting followed in respect of nursery expenses. The ARs have cited decision reported in 262 ITR 388 (Calcutta High Court) in the case of CIT Vs. Tasati Tea Company Ltd. The submissions of the appellant are reproduced as under:- ‘The appellant maintains nursery in its gardens for the purpose of replanting and planting of tea bushes in an area where the tea bushes are dead or became useless or in an area previously abandoned and also for extensio…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S. GOODRICK GROUP LTD., KOLKATA

Bench: Shri S.S.Godara & Dr. A.L. Saini

…ims. The CIT(A) accepts assessee’s argument as follows:- “The ARs of the appellant have filed a detailed submission explaining the nature of expenses and the method of accounting followed in respect of nursery expenses. The ARs have cited decision reported in 262 ITR 388 (Calcutta High Court) in the case of CIT Vs. Tasati Tea Company Ltd. The submissions of the appellant are reproduced as under:- ‘The appellant maintains nursery in its gardens for the purpose of replanting and planting of tea bushes in an area where the tea bushes are dead or became useless or in an area previously abandoned and also for extensio…

ACIT, CIRCLE-4(1), KOLKATA, KOLKATA vs. M/S. GILLAPUKRI TEA CO. LTD,, KOLKATA

In the result, the appeal of revenue is partly allowed

Bench: Hon’Ble Shri S.S. Godara, Jm & Shri M.Balaganesh, Am ] I.T.A. No. 821/Kol/2017 Assessment Year: 2012-13

…t the expenses cannot come under the head revenue expenditure as the nursery expenses gives advantage to the assessee for a number of years. On appeal, the CIT(A) following the decision of Hon’ble Calcutta High Court in the case of Tasati Tea Ltd. reported in 262 ITR 388 deleted the disallowance of Rs.3,16,929 on account of nursery expenses. Aggrieved, revenue is before us. 4. We have heard rival submissions and gone through the facts and circumstances of the case. We note that the ld DR could not controvert the factual finding of CIT (A) that the nursery expenses claimed by the assessee as deduction is actually…

DCIT, CIR-4(1), KOLKATA, KOLKATA vs. M/S ENGO TEA COMPANY LTD., KOLKATA

In the result, the appeal of the Revenue is dismissed

Bench: Hon’Ble Shri N.V. Vasudevan, Jm & Shri M.Balaganesh, Am ] I.T.A No. 894/Kol/2015 Assessment Year : 2012-13 Dcit, Circle-4(1), Kolkata -Vs- M/S Engo Tea Company Ltd. [Pan: Aaace6393H] (Appellant) (Respondent)

…trictly falls under Rule 8(2) and therefore, it was humbly submitted that the replantation expenses be allowed as a deduction. Reliance was also placed on the decision of the Hon’ble Jurisdictional High Court in the case of CIT vs. Tasati Tea Ltd. reported in 262 ITR 388 (Cal) which held as under:- “If the plants are raised and maintained in a nursery for being utilized for the purpose of replantation without any expansion of the plantation area or replantation in an abandoned area, then it cannot be said to be a capital expenditure. Capital expenditure involves an investment increasing the capital for higher pro…

D.C.I.T CIR - 4,KOLKATA, KOLKATA vs. M/S GILLANDERS ARBUTHNOT & CO, KOLKATA

In the result, the appeal of revenue dismissed

Bench: Shri N.V.Vasusdevan & Shri Waseem Ahmedassessment Year :2009-10 Dcit, Circle-4, P-7, V/S. M/S Gillanders Arbuthnot Chowringhee Square & Co. Ltd., C-4, Gilander Kolkata-700 069 House, N.S.Road, Kolkata-700001 [Pan No.Aaacg 9832 F] .. अपीलाथ" /Appellant ""यथ"/Respondent

…same to be of enduring nature for long term plantation of tea gardens for growing good quality of tea. 10. Aggrieved, assessee preferred appeal before CIT(A), who relying on the jurisdictional High Court decision in the case of CIT Vs. Tasati Tea Ltd. (2003) 262 ITR 388(Cal) deleted the disallowance of expenses ITA No. 905/Kol/2013 A.Y.2009-10 DCIT CIR-4 Kol. v. M/s Gillander Arbuthnot & Co. Ltd. Page 6 by observing as under: “10.2. I have considered the facts narrated by appellant and also decision relied upon of the Hon’ble jurisdictional High Court. The expenditure claimed by appellant is incurred for the p…

DCIT, CIRCLE - 4, KOLKATA, KOLKATA vs. M/S. TIRRIHANNAH CO. LTD, KOLKATA

In the result, the appeal filed by the Revenue is dismissed

Bench: Shri M. Balaganesh, A.M. & Shri S.S.Viswanethra Ravi, J.M.)

…). The submission of the ld. Counsel for the assessee is that the expenditure incurred to maintain young tea plants is of revenue expenditure, thereby the assessee company claimed deduction of the said amount in accordance with the decision reported in [2003] 262 ITR 388 (Cal) in the case of CIT-vs- Tasati Tea Ltd. The M/s. Tirrihannah Co.Ltd. Assessment Year: 2002-03 ld. Counsel for the assessee drew our attention to the page no.71 of the paper book in para IV, which is extracted below: “Expenditure on young tea maintenance : During the financial year assessee company has claimed Rs.60,02,965/- as Revenue exp…

JCIT(OSD), CIRCLE -4, KOLKATA, KOLKATA vs. M/S GILLANDER ARBITHNOT & CO. LTD., KOLKATA

In the result, the appeal of revenue is dismissed

Bench: Shri Mahavir Singh, Jm & Shri Waseem Ahmed, Am]

…the same to be of enduring nature for long term plantation of tea gardens for growing good quality of tea. Aggrieved, assessee preferred appeal before CIT(A), who relying on the jurisdictional High Court decision in the case of CIT Vs. Tasati Tea Ltd. (2003) 262 ITR 388(Cal) deleted the disallowance of expenses by observing as under: “10.2. I have considered the facts narrated by appellant and also decision relied upon of the Hon’ble jurisdictional High Court. The expenditure claimed by appellant is incurred for the purpose of re-plantation in the existing area and plants grown in the nursery were used for rep…