TMI Blog2012 (9) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... Mukesh Verma, CIT Respondent by : Shri Rajendra Agiwal ORDER Per R.S. Padvekar, JM In this appeal, the Revenue has challenged the impugned order of the Ld CIT(A) -I, Pune, dated 19.1.2011 for the A.Y. 2007-08. The Revenue has taken the following effective grounds in the appeal: 01) The learned Commissioner of Income-tax (Appeals) grossly erred in directing the Assessing Officer to treat assessee s income as agriculture income u/s. 2(1A)(b)(i) of the Income-tax Act, 1961 and to exclude said income u/s 10(1) of the Act. 02. The learned Commissioner of Income-tax (Appeals) grossly erred in ignoring the facts that there is no basic place in a green house and tissue culture laboratory which cannot be termed as land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2003-04 and 2005-06 and 2006-07 being ITA Nos. 1274 to 1278/PN/2010, common order dated 22.2.2012. The operative part of the order of the Tribunal in ITA Nos. 1274 to 1278/PN/2010 dated 22nd February 2012 is as under : 7. We find that the Tribunal in the case of assessee for the A.Y. 2004- 05 has discussed an identical issue in detail before deciding the same in favour of the assessee. The Tribunal while deciding the issue has taken strength from several decisions including decision of Hon ble Supreme Court in the case of CIT Vs. Raja Benoy Kumar Sahas Roy (Supra), Hon ble Madrash High Court in the case of CIT Vs. Soundarya Nursery, 241 ITR 530(Mad.) and of Hon ble Allahabad High Court in the case of Jugal Kishore Arora Vs. DCIT, 269 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n earth and for which activities, certainly contribution of human labour and energy are essential. 35. Their Lordships thus clearly noted the primary source of the plant in the assessee s activities was the mother plant, which is reared on earth and for which certainly contribution of human labour and energy was essential . These observations equally apply to assessee s case as well. 36. In Soundarya Nursery s case, Hon ble Madras High Court, after taking note of the law laid down by the Hon ble Supreme Court in the case of Raja Benoy Kumar Sahas Roy (supra) and the facts of the case, observed as follows : All the products of the land, which have some utility either for consumption or for trade or commerce, if they are based on la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tural 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. Learned CIT(A) has distinguished this precedent on the ground that in assessee s case, basic operations have not been carried out on land. That premises itself, for the detailed reasons set out earlier in this order, rests on a unsustainable legal foundation. The basic operations have been, and can only be, carried out on the land. The fact that this land is in a greenhouse does not change the character of operations. The distinction was thus wrongly made out by the CIT(A), in our considered view, the principles laid down by the Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Finance Bill and other documents to support the contention that this amendment in law was merely clarificatory. Our attention was thus invited to several judicial precedents in which it is noted that even while an amendment is stated to be prospective in application, but held to be retrospective in effect. On the basis of these elaborate arguments, it was submitted that, in any event, based on this clarificatory amendment in law, basic operations having been carried out on land is no longer sine qua non for treating income as agricultural income. This plea was clearly an alternative plea. Since we have allowed the basic plea of the assessee and we have held that the basic operations were carried out on land, it is not really necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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