M/s.Rehabilitation Plantations Limited v. CIT

MALANKARA PLANTATIONS LTD vs. THE DEPUTY COMMISSIONER OF INCOME TAX

Bench: The Income Tax Appellate Tribunal, Cochin Bench. The Subject Matter Of Appeal Relates To Assessment Year 2011-12 & The Controversies Relate To The Allowance Claimed By The Assessee Towards The Replantation Of Rubber Plants In An Area Where Rubber Trees

…case. A Division Bench of this Court referred the issues arising under Rule 7A(2) of the Income Tax Rules and also the deduction towards the upkeep and maintenance expenses by the assessee. The question referred to the Full Bench reads thus: 1 (2012) 251 CTR 343 (Ker.) I.T.A. No.23/2018 -4- “Whether the assessee/Plantation Companies under Rule 7A(2) of the Rules are entitled to an allowance towards replanting expenses and a further deduction towards upkeep and maintenance expenses incurred by the assessee for the immature plants till the age of maturity in the computation of income unde…

THE RAHABILITATION PLANTATION LTD. vs. COMMISSIONER OF INCOME TAX

Appeal is allowed in part as indicated above

Bench: The Income Tax Appellate Tribunal, Cochin Bench. The Subject Matter Of Appeal Relates To Assessment Year 2008-09 & The Controversies Relate To The Allowance Claimed By The Assessee Towards The Replantation Of Rubber Plants In An Area Where Rubber Trees Were Planted & Have Become Unproductive & Are Not In An Abandoned Area As Required By Rule 7A (2) Of The Income Tax Rules 1962, The Deduction Of Expenditure Incurred Towards Upkeep & Maintenance Of Rubber Saplings Till Maturity Or The Trees Yield & The Loss Incurred At The Rubber Sheet Factory.

…the Act and Rules.” The Full Bench answered the question referred to it by order dated 01.08.2022 and the operative portion is excerpted for ready reference. “The answers to the two facets of the question referred to the Full Bench are that: 1 (2012) 251 CTR 343 (Ker.) ITA NO. 37 OF 2018 -4- “In the computation of business income under Rule 7A of the Rule 1962, the assessee under Rule 7A(2) is entitled to an allowance in respect of the cost of replacement of dead and useless rubber trees in the rubber plantation in an area not abandoned, subject to Section 10(31) of Act 1961. The upkeep…