Tribunal held that , the expenditure relating to the maintenance of cattle owned by the employees was considered as expenditure of tea operation . The recoveries from employees against such expenditure were disclosed under other income. Since expenditure incurred on cattle keepers was purely labour welfare measure which was approved by Plantation Labour Committee, expenditure incurred was directly relatable to tea business of assessee, therefore, same should be treated as expenditure under Rule 8 of the I.T. Rules. (ITA Nos.77, 78 , 91, 131, 163 164/1Coch/2017 dt. 4-1- 2018) (AY. 2010-11, 2011-12 2012-13)
Kannan Devan Hills Plantations Co. Pvt. Ltd. v. ACIT (2018) 62 ITR 451 (Cochin)(Trib.)
S.37(1): Business expenditure – Growing tea – The expenditure relating to the maintenance of cattle owned by the employees was considered as expenditure of tea operation – The recoveries from employees against such expenditure were disclosed under other income. -Since expenditure incurred on cattle keepers was purely labour welfare measure which was approved by Plantation Labour Committee, expenditure incurred was directly relatable to tea business of assessee, therefore, same should be treated as expenditure under Rule 8 of the I.T. Rules. [ R.8 ]