Cess on Green Leaf paid to govt is Deductible from Composite Income

Amount Paid as Cess on Green Leaf is Deductible from Composite Income and not from mere agricultural income The brief facts of this issue is that the ld AO observed that the assessee had debited a sum of Rs. 369.88 lakhs under the head ‘Cess on green leaf’ which were paid to Governments of Assam and West Bengal. The ld AO placed reliance on the decision of the Hon’ble Gauhati High Court in the case of Jorhat Group Ltd vs Agricultural ITO reported in 226 ITR 622 (Gau) wherein it was held that the cess on green leaf is deductible from the agricultural income only and not from the composite...