Agricultural and business income mix: rule sets deduction method for produce used in business and limits further deductions. Rule 270 governs determination of income that is partly agricultural and partly business income. The market value of agricultural produce raised by the assessee, or received as rent in kind, is deductible where the produce is used as raw material in the business or its sale receipts are included in the business accounts. No further deduction is allowed for cultivation-related expenditure. Market value is based on average sale price, or, where no ordinary market sale exists, cultivation expenses, land revenue or rent, and reasonable profit.
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Agricultural and business income mix: rule sets deduction method for produce used in business and limits further deductions.
Rule 270 governs determination of income that is partly agricultural and partly business income. The market value of agricultural produce raised by the assessee, or received as rent in kind, is deductible where the produce is used as raw material in the business or its sale receipts are included in the business accounts. No further deduction is allowed for cultivation-related expenditure. Market value is based on average sale price, or, where no ordinary market sale exists, cultivation expenses, land revenue or rent, and reasonable profit.
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