1973 (3) TMI 25 - HC - Income Tax

Whether the sale proceeds of standing blue-gum trees a sum constituted agricultural income liable to tax - Blue-gum trees are generally planted in Nilgiris not for the purpose of getting timber but to derive eucalyptus oil from their leaves. When such trees are cut and converted into money such receipt though income is not of revenue nature

Summary

The High Court of Madras ruled that the sale proceeds of standing blue-gum trees are considered capital, not agricultural income, as they are seen as a destruction of a capital asset. The Tribunal's decision was upheld, and the tax case was dismissed with costs. (Case citation: 1973 (3) TMI 25 - MADRAS High Court)