Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (11) TMI 586 - AT - Income TaxReopening of assessment - reopening as based on audit objection - Held that:- AO has reopened the assessment within four years from the end of the relevant assessment year. The Id.AR has primarily questioned the reopening of the assessment based on audit objection. We disagree with this contention of the ld. AR. Reopening on the basis of audit objection was upheld as valid by the Supreme Court in CIT v. P. V.S. Beedies Pvt. Ltd (1997 (10) TMI 5 - SUPREME Court). - Decided against assessee. Disallowance of agricultural income - treatment of income earned from the activity of the nursery as agricultural income and exempt u/s.10(1) - CIT(A) allowed claim - Held that:- The decision taken by the CIT(Appeals) treating the income from nursery as agriculture income is justified and as in similar circumstances, in the case of CIT v. Soundarya Nursery (1998 (8) TMI 37 - MADRAS High Court)as held that the income from the sale of plants grown in pots and the sale of seeds derived on account of cultivation by the assessee was agricultural income. The facts of the present case are similar to that of the Jurisdictional High Court, we have no hesitation in following the same. Further, it is noticed that the Ahmedabad Bench of the Tribunal, in the case of CIT v. Best Roses Biotech (P) Ltd. [2011 (11) TMI 373 - ITAT AHMEDABAD], held that the income earned from floriculture activity of growing rose plants on leasehold agricultural land falls within the definition of ‘agricultural income’ as per sec.2(1A) of the Act. In view of all these decisions, we are inclined to uphold the order of the CIT(Appeals) and dismiss the appeal of the Revenue. - Decided in favour of assessee.
|