{"id":32927,"date":"2023-02-25T11:41:07","date_gmt":"2023-02-25T06:11:07","guid":{"rendered":"https:\/\/itatonline.org\/digest\/rehabilitation-plantations-ltd-v-cit-2023-450-itr-626-fb-ker-hc-editorial-rehabilitation-plantations-ltd-v-cit-2012-251-ctr-343-73-dtr-78-kerhc-overruled\/"},"modified":"2024-02-11T17:43:45","modified_gmt":"2024-02-11T12:13:45","slug":"rehabilitation-plantations-ltd-v-cit-2023-450-itr-626-fb-ker-hc-editorial-rehabilitation-plantations-ltd-v-cit-2012-251-ctr-343-73-dtr-78-kerhc-overruled","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/rehabilitation-plantations-ltd-v-cit-2023-450-itr-626-fb-ker-hc-editorial-rehabilitation-plantations-ltd-v-cit-2012-251-ctr-343-73-dtr-78-kerhc-overruled\/","title":{"rendered":"Rehabilitation Plantations Ltd. v. CIT (2023) 450 ITR 626 \/ 331 CTR 719(FB) (Ker.)(HC) Editorial : Rehabilitation Plantations Ltd v. CIT (2012) 251 CTR 343\/ 73 DTR 78 (Ker)(HC), overruled."},"content":{"rendered":"<p>The question before the Full Bench was<strong> \u201c Whether the assessee-plantation companies under rule 7A(2) of the Rules are entitle to an allowance towards replanting expenses and further deduction towards upkeep and maintenance expenses incurred by the assessee for the immature plants till the age of maturity in the computation of income under the Act and Rules ?\u201d <\/strong><\/p>\n<p>Court held that\u00a0 Rule\u00a07A\u00a0of the Income-tax Rules, 1962 is structured in such a way keeping in perspective the very nature of a rubber plantation, time to yield produce, the normal produce yield period, etc. Replantation allowance is a straight allowance available to an assessee subject to satisfying the other two conditions: viz., (i) replantation cost is claimed in the area where rubber trees were planted and are cut, or the rubber trees have become useless or unproductive, (ii) the replanting must be a continuous act upon felling the rubber trees in the rubber plantation. The language ensures continuity of rubber plantation by providing for the allowance of replantation costs. The concept of infilling is not attracted to the nature of allowance. Under rule\u00a07A\u00a0of the Rules in computing the income to tax under the Act, the allowance shall be made in respect of the cost of replanting rubber plants that have died or become permanently useless in an area already planted if the area has not been abandoned. In determining the cost of replanting or replacement, no deduction of the amount of any subsidy under the provisions of clause\u00a0(31)\u00a0of section\u00a010\u00a0is includible in the total income. In the computation of business income under rule\u00a07A\u00a0of the Rules, the assessee under rule\u00a07A(2)\u00a0is entitled to an allowance in respect of the cost of replacement of dead and useless rubber trees in the rubber plantation in an area not abandoned, subject to section\u00a010(31)\u00a0of the Act. The upkeep and maintenance expenses incurred by the assessee till the maturity of rubber trees are revenue expenditures eligible for deduction under section\u00a037\u00a0of the Act. (AY. 2011-12)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 37(1) : Business expenditure-Capital or revenue tests-Rubber plantation-Amount spent on upkeep and maintenance of mature rubber trees-Allowable as revenue expenditure-Cost of replacement of dead and useless rubber trees deductible as replacement cost  [R. 7A(2)]. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-32927","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-8z5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=32927"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32927\/revisions"}],"predecessor-version":[{"id":39073,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/32927\/revisions\/39073"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=32927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=32927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=32927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}