Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 237 - ITAT COCHINSale of rubber tress - Agricultural income or not - Held that:- Following Harrisons Malayalam Limited. Versus Assistant Commissioner Of Income-Tax [2012 (9) TMI 510 - ITAT, COCHIN] - Rule 7A of Income tax Rules has no application to the income derived on sale of old rubber trees - No material change has been brought about by introduction of Rule 7A because Rule 7A is applicable only when the grower of rubber trees himself carries on manufacturing activity on latex or coagulum sourced from rubber trees grown by him - Rubber trees are not grown for the purpose of selling the trees but for generating income from the trees in the shape of latex. The rubber trees constitute capital asset of rubber estate and dominant purpose of growing rubber trees is to create source for supply of liquid latex - The rubber trees therefore constitute capital asset of agricultural operations. There is no manufacturing activity involved either at the stage of cultivation and growing of rubber tree or at the time of its felling on trees becoming old and unyielding - Income derived from sale of old and unyielding trees do not include any element of income derived from sale of centrifuged latex or senex or latex based crepes - The amount received by the assessee on sale of old rubber trees in the three years under consideration constitutes capital receipts - Decided in favour of assessee.
|