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2011 (5) TMI 490 - AT - Income TaxAgricultural income – agricultural and non agricultural operations - assessee engaged in the business of growing and exporting of ornamental plants – assessee also carrying on tissue culture methodology in laboratories - Held that:- Plant tissue culture is used to reproduce clones of a plant in containers and required medium, is not consisting of land or soil. Such multiple plants are then transferred to soil to be grown into mature plants. When the assessee is not carrying on the cultivation of land or plants in the soil in pots, the operations cannot be called as agricultural operations. Neither the medium is soil nor basic operations are carried out. Of course, once the sampling has been planted in the soil and is let to grow into a mature plant, this operation is definitely agricultural operation and income there-from has to be treated as agricultural income. Thus, the entire operation of the assessee is not agricultural and, therefore, the entire income cannot be treated as agricultural income. Therefore, matter is remitted back to Assessing Officer for the purpose of making a field inspection of the assessee’s site and thereafter if he finds that any of the agricultural activities are carried on in the laboratory, then he shall compute the ratio of the expenditure between the agricultural and non agricultural operations and apportion the agricultural income in the same ratio. Both the appeals of assessee and Revenue are allowed for statistical purposes.
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