Income Tax

Expenditure on maintenance of immature rubber plants disallowed

Expenditure incurred for maintenance of immature rubber plants in replanted areas not allowable as deduction as per High Court judgment

The assessee had challenged the order of CIT(A) in upholding the assessment order of the AO disallowing the cost of planting and maintenance of immature rubber plants.

ABCAUS Case Law Citation:
ABCAUS 2537 (2018) 09 ITAT

The assessee company was engaged in rubber plantation. The Assessing Officer completed the assessment u/s 143(3) of the I.T.Act by making a disallowance towards the claim of deduction made by the assessee on account of maintenance of immature rubber plants.

Following the judgment of the Hon’ble High Court, the CIT(A) confirmed the view taken by the Assessing Officer in making disallowance of expenditure on account of maintenance of immature rubber plants.

The Tribunal observed that the expenditure incurred was not for infilling in yielding area. The expenditure was incurred for maintenance of immature rubber plants in replanted areas and such expenditure could not be allowed as deduction going by the dictum laid down by the Hon’ble High Court.

Accordingly, the appeal filed by the assessee was dismissed

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