Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 637 - AT - Income TaxAdmission of additional grounds - Expenses attributable to agricultural income or not - Claim of weighted deduction u/s 32(2AB) of the Act - Exemption of agricultural income - u/s 10(1) of the Act - Applicability of section 40(a)(ia) of the Act Held that:- The decision in M/s Advanta India Ltd., Versus The Asst. Commissioner of Income-tax, Circle-11(4), Bangalore [2012 (9) TMI 577 - ITAT, BANGALORE] followed - the issues raised in additional grounds are the legal issues which go to the root of the matter and for deciding these legal issues no new facts are required to be considered as all the facts are already recorded in the orders there was no force in the contention of the revenue that the issue was not challenged before the AO, therefore, assessment was correctly made by the AO Relying upon National Thermal Power Co. Ltd. vs. CIT [1996 (12) TMI 7 - SUPREME Court] the additional grounds are admitted. It is appropriate to remit the issue to the file of the AO to see whether the assessee taken land on lease from farmers, engaged the services of farmers for production of hybrid seed, took entire produce from the farmers, reimbursed the entire expenses of cultivation to the farmers and if the farmers are not given for the produce except reimbursement of the entire charges incurred by them and repayment of labour charges then only the assessee could be considered as it has carried on agricultural operations itself so as to treat income of the assessee as agricultural income Decided partly in favour of Assessee.
|