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2018 (1) TMI 658 - AT - Income TaxDisallowance of the claim of agricultural income - nature of the agricultural activities carried on by the assessee - The case of the Revenue is that the assessee, though has levelled the land by use of tractors, has not done any further agricultural activity of sowing the seeds etc. - Held that:- In the case of K.Lakshmanan & Co. vs. CIT (1998 (2) TMI 10 - SUPREME Court), the Hon'ble Supreme Court was dealing with a case of an assessee which was growing mulberry leaves and rearing silkworms and the assessee has grown the mulberry tree and plucked the leaves from the trees which were cut and fed to the silkworms and the silk cocoons were sold in the market by the assessee. The assessee claimed that the entire income derived from growing of mulberry leaves and sale of cocoons was exempt from levy of income-tax as it was ‘agricultural income’. The Hon'ble Supreme Court held that the agricultural produce of the cultivator will be mulberry leaves and by no stretch of imagination can the silkworms and certainly not the silk cocoons be regarded as the agricultural produce of the cultivator. We find support from this judgment also in favour of our findings. The assessee has filed the copies of the invoices and bills and agricultural activities as additional evidence before us and we have considered the same for giving relief to the assessee. However, since this additional evidence was not filed before the authorities below, we deem it fit and proper to admit the same and remand the same to the file of the AO for verification of the authenticity of the said documents and for computation of agricultural income. If it is found that these documents are genuine, then our findings stands. If it is otherwise, the AO is free to take a decision on the basis of only such documents which are found to be genuine. The assessee is directed to furnish the bifurcation of its income from CWG towards agricultural activity and non-agricultural activity before the AO on the basis of our finding that activity up to harvesting is agricultural activity. - Decided partly in favour of assessee
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