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2019 (7) TMI 82 - AT - Income TaxAgricultural income - total receipt is taxable or income - treatment of activity of growing of hybrid seeds - exemption claimed u/s 10(1) - HELD THAT: Admittedly, the assessee himself had reported the receipts at ₹ 5.54 crores and claimed the same to be exempt u/s 10(1) but had also enclosed audited Profit and Loss Account, in which it had declared loss of ₹ 1.22 crores. In this regard, the CIT(A) has correctly held that there is no merit in the order of AO in assessing total receipts in the hands of assessee and at best, the AO could have determined the loss / income assessable in the hands of assessee The CIT(A) while deciding the issue in the present case had in turn, relied on the decision of ACIT Vs. Ajeet Seeds Ltd. [2013 (11) TMI 894 - ITAT PUNE] which has been confirmed by Bombay High Court [2015 (6) TMI 1187 - BOMBAY HIGH COURT]. Consequently, we hold that growing of hybrid seeds in the case of assessee can never be held to be non-agricultural activity. Hence, the assessee is entitled to claim deduction under section 10(1) of the Act. - Decided in favour of assessee.
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