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

Download Full Judgment Click Here >>

Share

Recent Posts

  • Income Tax

Non issue of notice u/s 143(2) for even belated ITR filed u/s 148 makes assessment void ab initio

Non issuance of notice u/s 143(2) for return filed u/s 148 even though belatedly, makes the assessment framed bad in…

6 days ago
  • Insurance

Calculation of functional disability depends on victim’s earning capacity in open market – SC

Calculation of functional disability depends on assessing the victim’s earning capacity in the open, competitive market – Supreme Court In…

7 days ago
  • Income Tax

Appeal against ITAT shall lie only before High Court within whose jurisdiction AO is situated

Appeal against every decision of ITAT shall lie only before the High Court within whose jurisdiction the Assessing Officer who…

1 week ago
  • Excise/Custom

SC recommends action against Customs Officer who relied upon AI generated fake case laws

Supreme Court recommends action against Commissioner of Customs who relied upon non-existent AI generated case laws. Supreme Court recommends action…

1 week ago
  • Income Tax

Non- payment of cost imposed can’t trigger automatic confirmation of an invalid exparte assessment.

ITAT power to pass such orders "as it thinks fit" implies a judicial discretion to be exercised within the parameters…

1 week ago
  • Income Tax

Non-deduction of TDS does not make transaction as unexplained in the hands of deductee – ITAT

Mere non-deduction of TDS by the deductor on a transaction does not change the character of the transaction to make…

2 weeks ago