Expenses on replantation without any expansion of plantation area or replantation in an abandoned area are not capital expenditure

ACIT Vs M/s Gillanders Arbuthnot & Co. Ltd. (ITAT Kolkata)

1. Expenses on replantation without any expansion of plantation area or replantation in an abandoned area are not capital expenditure

Capital expenditure involves an investment increasing the capital for higher profit. The expansion means extension of plantation to an additional area. An area already abandoned, if replanted would be an expansion of the area under cultivation for the previous year concerned. The maintenance of an area already under cultivation cannot be treated to be an expansion of the plantati

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