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2022 (11) TMI 518 - ITAT PUNEAgricultural income - seeds production activity - whether the CIT(A) is justified in holding the seeds production activity as exempt u/s 10(1) as against the business income as held by the A.O? - whether the income derived by the assessee is from agricultural operations amounting to agricultural income? - HELD THAT:- We find the AO denied the claim as agricultural income and treated the same as business income by placing reliance on the decision of Hon’ble Supreme Court in the case of Raja Benoy Kumar Sahas Roy [1957 (5) TMI 6 - SUPREME COURT] and case of Namdhari Seeds Pvt. Ltd. [2011 (10) TMI 488 - KARNATAKA HIGH COURT] held every amount accrued to a person in whose hands agricultural produce passes through cannot become agricultural income and it is only when owner, landlord or farmer or persons having derivative interest in such lands receives income from land by performance of agricultural operations on it can be termed as agricultural income by placing reliance in the case of Raja Benoy Kumar Sahas Roy (supra). Therefore, the finding of Hon’ble High Court of Karnataka Namdhari Seeds Pvt. Ltd. (supra) is applicable to the facts of the present case. Thus, the order of AO is restored. Grounds 1 to 6 raised by the Revenue are allowed.
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