Proportionate Allocation of Employee Benefits for Agriculture Upheld by ITAT

Super Crop Safe Limited Vs ACIT (ITAT Ahmedabad) In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Ahmedabad, in the case of Super Crop Safe Limited vs. ACIT (Assessment Year 2018-19), largely upheld the Assessing Officer’s (AO) decision to proportionally allocate employee benefit expenses to the agricultural activities of Super Crop Safe Limited. The Tribunal, however, deleted the allocation of finance costs and set aside the matters of depreciation and certain ‘other expenses’ for re-verification by the AO. The disallowance of Section 80JJA deduction was also set...