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TMI Blog2022 (2) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... e is barred by limitation by 11 days. She has moved a condonation explaining reasons thereof. We have heard both the parties on this preliminary issue. Having regard to the reasons given in the petition, we condone the delay and admit the appeal for hearing. 3. The assessee pleads the following substantive grounds in the instant appeal: "1. The order of the Pr CIT-2, Hyderabad in holding that the operations carried on by the appellant were not agricultural in nature is totally contrary to the facts and evidence on record and therefore unsustainable both on facts and in law. 2. The Ld. Pr. CIT failed to note that the income derived from some of the banana saplings which are subject to rigorous operations culminating in production and sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the Assessing Officer having adopted one of them the Principal CIT failed to note that under such circumstances an order cannot be said to be prejudicial to the interest of Revenue. 7. The Learned Pro CIT failed to appreciate that the Appellant's unit was registered with government authority as carrying on horticulture activity and is therefore eligible for exemption U/S 2(1A) of the Act as agriculture operations." 4. We advert to the basic relevant facts. This assessee is stated to be engaged in the activity of production and sale of tissue cultured plants. She had filed her return for the impugned assessment year on 16.02.2016 admitting total income of Rs. 1,72,450/- with agricultural income amounting to Rs. 28,66,940/-. The Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of tissue culture is initiated. It involves selection of appropriate mother plant and keeping it decease free in natural conditions of land. Assessee under consideration is not carrying out any activity at this stage. The present assessee clearly explained in her submission that the suckers are collected from the well maintained banana field and also booked expenditure of Rs. 1,07,700/- towards suckers purchase of plants. Thus it is evident that the mother plants are being purchased from the banana farms and not grown by assessee herself by application of human labour and energy on the land. (ii) Phase One - Selection of mother plant: An actively growing healthy shoot tip of auxiliary or terminal bud or shoot-tip of plant is being s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant to get multiple plants with same traits by placing various tissues of the mother plant in containers and required medium which is definitely not consisting of land or soil." 7. As per Section 2(1A) in The Income- Tax Act, the term "agricultural hc.or;-.es(sic) means- (a) Any rent or revenue derived from land which is situated in India and is ='5SC for agricultural purposes; (b) Any income derived from such land by. 6. She has thereafter quoted a catena of case law that such an exemption claim accepted at the Assessing Officer's behest during the course of the impugned regular assessment has been without any factual verification and had therefore, this is a fit case to invoke section 263 revision jurisdiction. This leaves the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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