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2015 (9) TMI 794 - AT - Income TaxTreatment to assessee's income - CIT(A) treated as agriculture income u/s 2(1A)(b)(i) and to exclude said income u/s 10(1) - assessee engaged in the business of production of nursery plants and banana plants, tissue culture activities etc - Held that:- We find no infirmity in the order of the CIT(A) following the decision of Hon’ble Madras High Court in the case of Soundarya Nursery (1998 (8) TMI 37 - MADRAS High Court)and the Explanation (3) to section 2(1A) of the Finance Act, 2008 held that the asessee’s activities involved basic agricultural operations and therefore income thereof constitutes agriculture income. Basic operations are carried out in the present case, which require human skill and labour, and subsequent operations, no matter how sophisticated, if that be used against the assessee, are only to foster the growth and to protect the produce, we find that the income from these operations can only be said to be agricultural income. Their Lordships were also dealing with a situation in which operations were carried on in a greenhouse. Therefore, merely because a greenhouse in involved, the nature of operations would not change - Decided in favour of assessee.
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