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Calcutta High Court

Commissioner Of Income Tax vs M/S. Binaguri Tea Co. Pvt. Ltd on 17 March, 2010

Author: Kalyan Jyoti Sengupta

Bench: Kalyan Jyoti Sengupta

                                   ITA No. 171 OF 2009

                         IN THE HIGH COURT AT CALCUTTA
                        SPECIAL JURISDICTION (INCOME TAX)
                                  ORIGINAL SIDE

                    COMMISSIONER OF INCOME TAX, KOLKATA-II

                                         Versus

                             M/S. BINAGURI TEA CO. PVT. LTD.



  BEFORE:

  The Hon'ble JUSTICE KALYAN JYOTI SENGUPTA

  The Hon'ble JUSTICE KALIDAS MUKHERJEE

  Date : 17th March, 2010.


            The Court :-Having     heard Mr. Farhan Gaffar, Learned Counsel for
the appellant and having gone through the impugned judgment and order
we are of the view that following substantial questions of law are involved
in this matter.
            Hence, we admit the appeal on those following points of law ;-
            i)     Whether on the facts and in the circumstances of the case
                   the Income Tax Appellate Tribunal was justified in holding
                   that depreciation of Rs.30,46,434/- is allowable on
                   machinery purchased out of withdrawal from investment
                   deposits in Tea Development Account under Section 33AB
                   of the Income Tax Act, 1961 ?
            ii)    Whether on the facts and in the circumstances of the case
                   the Income Tax Appellate Tribunal was justified in
                   allowing      cess   on   green       tea   leaves   amounting   to
                   Rs.14,05,097/- and erred in not considering the ratio laid
                   down by the Hon'ble Gauhati High Court in the case of
                                       2


                   Jorehat Group Limited -Vs- ACIT reported in 289 ITR 422
                   ?
           iii)    Whether on the facts and in the circumstances of the case
                   the Income Tax Appellate Tribunal was justified in law in
                   restricting the disallowance of dividend income to the
                   tune of Rs.2,50,598/- made under Section 14A to
                   Rs.17,000/- and erred in not considering the procedure
                   laid down by the Special Mumbai Bench in the case of
                   Daga Management Private Limited ?
            Smt. Sutapa Roychowdhury, Learned Counsel appears in this
matter and submits that she has received instruction to appear in the
appeal and as such she waives the service of Notice-of-Appeal and upon
her undertaking that she will file vakalatnama within three days from date
her appearance is noted failing which her appearance will be denoted. In
that event the Department concerned is to serve usual Notice-of-Appeal
upon the respondent.

Let requisite number of paper books be filed within eight weeks from date.

It would be open for the respondent to make suitable application for dismissal of the appeal upon notice to the appellant, if so advised.

Liberty to mention for early hearing. All parties are to act on a xerox signed copy of this order on the usual undertakings.

(KALYAN JYOTI SENGUPTA, J.) (KALIDAS MUKHERJEE, J.) GH.