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2013 (10) TMI 98 - GUWAHATI HIGH COURTDetermination of agriculture income - composite income - Rule 8 of the Income Tax Rules - business of growing, manufacturing and selling of tea. - division as 40% as business income and 60% as agriculture income – Premium on import licence, Sale of Scrap, Misc. Garden Income, and Excise duty, etc. - Held that:- Receipts, which the assessee-appellant claimed as composite income before apportionment thereof in terms of Rule 8, had direct nexus with the assessee-appellant’s activities of growing, manufacturing and selling of tea, it was not open to the authority concerned to treat such income as an income, which could not have been described as income derived from the business of growing, manufacturing and selling of tea by the assessee-appellant. Refusal to treat the total sum of Rs. 2,73,40,080/- as composite income of the assessee-appellant, before apportionment thereof, under Rule 8, was wholly illegal and cannot be sustained – Revenue is directed to treat the receipts of Premium on import licence, amounting to Rs. 1,20,25,812/-, Sale of Scrap, amounting to Rs. 2,12,218/-, Misc. Garden Income amounting to Rs. 1,44,32,310, and Excise duty amounting to Rs. 6,69,740/-, as the assessee-appellant’s composite income before apportionment thereof in terms of Rule 8 of the Rules - Decided in favor of assessee.
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