9911796707
TMI Blog2023 (4) TMI 1172X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that assessee is engaged in the business of production of hybrid seeds and open pollinated seed varieties of various crops like cotton, paddy, maize, sunflower, bajra, wheat, jowar, vegetables, etc. It is carrying out the agricultural operation in whole of India; that since it is not possible for the assessee to own all the land, as required for the purpose of its agricultural operations, it has accordingly taken certain land on lease from farmers and has also availed services of farmers by entering into seed production agreement for usage of their land; that the farmers are provided with foundation seeds for carrying out the agricultural activities/cultivation for multiplication of seeds under the guidance, specifications and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess of multiplication in larger quantity, the assessee entered into agreement with farmers for carrying out such specialised job through contract; that the assessee company is neither cultivating the seeds nor deriving income from agriculture; that the activity of the assessee is an integral and composite one, right from the research and development to the final marketing/sale of hybrid seeds which involves several stages and the first few stages cannot be isolated and termed in by the assessee company; that the definition of agriculture as contemplated in section 2(1A) of the Act does not cover the activity of foundation seeds production by the assessee, just because the assessee is undertaking basic agricultural operations like sowing, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Prabhat Agri Biotech Limited (supra), the learned CIT(A) upheld the contentions raised by the assessee and deleted the addition. 7. Aggrieved by such findings of the learned CIT(A), the Revenue is in this appeal, contending that the activity of developing and marketing of seeds is purely a commercial activity bereft of carrying of agricultural activity. Learned DR submitted that the assessee itself does not undertake any agricultural operation but procured hybrid seeds from farmers and as such the activities carried out by the farmers alone can be said to be agricultural activities but not the activities of the assessee. It is further submitted that the issue on identical facts in the case of M/s. Nuziveedu Seeds Ltd., for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut the activities conducted by the assessee or the assessee conducting such activities year after the year. It is also not in dispute that for the earlier assessment year, 2012-13, initially, no such disallowance of claim under section 10(1) of the Act was made, but was made consequent to the order under section 263 of the Act. It is also not in dispute that the order under section 263 as well as the order under section 143(3) read with section 263 of the Act were quashed. It is also not in dispute that the activities conducted by the assessee in this case are similar to the activities of M/s. Nuziveedu Seeds Ltd. 10. Learned CIT(A) followed the view taken by a Co-ordinate Bench of this Tribunal in the case of M/s. Nuziveedu Seeds Ltd., (s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of agricultural activity. When such agricultural activity is conducted and seeds are produced, merely because such seeds were sold commercially, the basic agricultural operations also cannot be dubbed as 'commercial activities', and not 'agricultural activities'. 13. Respectfully following the consistent view taken in assessee's own case, for the assessment years 2012-13 in consonance with the view taken by the Tribunal in the case of M/s. Nuziveedu Seeds Ltd., (supra) following the binding precedent of the Hon'ble jurisdictional High Court in the case of Prabhat Agri Biotech (supra), we find the impugned order perfectly legal and there are no grounds to interfere with the same. Grounds of appeal are accordingly dismissed. 14. In the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
