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Income Tax - Highlights / Catch Notes

Home Highlights September 2018 Year 2018 This

Disallowance of Agricultural income - nature of income from sale ...

Income Tax

September 11, 2018

Disallowance of Agricultural income - nature of income from sale of agricultural produce, i.e. , sugarcane seeds grown by the assessee from the lease hold land carrying out basic operation on land involving expenditure of human skill such as ploughing, tilling, sowing and planting of seeds - Assessee failed to prove its case.

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  1. Cash sale of the agricultural produce by its cultivator to the trader for an amount less than ₹ 2 Lakh will not attract disallowance, any penalty or PAN

  2. Cold storage facility for agricultural produce - The appellant is not engaged in the activity of storage of agricultural produce - the benefit as storage of agricultural...

  3. Nature of land sold - sale of agricultural land or not - it is nowhere necessary for an assessee to prove carrying out actual agricultural activity of the land

  4. Whether the sale of property was adventure in the nature of trade - Held no - The sale of agricultural plot was not by way of business purpose - HC

  5. Agricultural income - The finding of the CIT (A) is that the crops grown are commercial in nature. The definition of ‘Agricultural Income’ does not limit its application...

  6. Nature of Income - Dealing in vegetable seeds - Agricultural Income OR Business Income - the percentage of margin earned on sale of agricultural produce cannot be the...

  7. Classification of goods - Sugarcane Juice - sugarcane juice is produced by way of crushing of sugarcane and hence not produced by farmer. Also process changes it's form...

  8. Business Support Service (BSS) – appellant constructed infrastructural facilities for marketing of agricultural produce and given to the farmers for marketing their...

  9. Capital gain - Nature of land - Sale of agricultural land – There is no requirement in any Act more especially the I.T. Act that only the self-cultivated land will be...

  10. Income from undisclosed sources - addition of agricultural income - Assessment of agricultural income declared by the assessee for various assessment years was...

 

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