In a recent ruling, the Kolkata bench of the ITAT allowed the deduction claim of Tata Global Beverages Ltd, on account of the amount paid by them under the head “cess on green leaf”.
The assessee, Tata Global Beverages Ltd paid Rs. 369.88 lakhs as “Cess on Green Leaf” to the Governments of Assam and west Bengal. The AO, relying upon the decision in Jorhat Group Ltd vs Agricultural ITO, held that the amount paid under the above head is deductible from the agricultural income only and not from the composite income.
Before the appellate tribunal, the assessee maintained that the amount is deductible from the composite income as per the ration laid on by the Calcutta High Court in the case, CIT vs A.F.T. Industries Ltd. The first appellate authority allowed the appeal and held in favour of the assessee. Aggrieved by the order of the appellate authority, the Revenue approached the Appellate Tribunal contending that the appeal against the order of the Calcutta High court is pending before the Apex Court.
Dismissing the appeal, the bench allowed the claim of deduction by the assessee on the basis of the decision in the CIT vs A.F.T. Industries Ltd.
Read the full text of the order below.
