2025 (9) TMI 530 - SCH - Income Tax

Income from controlled-condition white button mushroom cultivation not 'agricultural income' under Section 2(1A); Section 10(1) benefits denied

SC held that income from cultivation of white button mushrooms in a factory under controlled conditions does not qualify as 'agricultural income' under ... “Agricultural Income” within the meaning of Section 2(1A) - Income generated from cultivation of white 'Button Mushrooms' under controlled temperature As decided by HC [2025 (5) TMI 1962 - MADRAS HIGH COURT] None of the situations specified above has been satisfied for the Respondent/Assessee to claim the benefit of Section 10(1) of the Act i.e., “Agricultural Income”. Income from sale of ‘Button Mushrooms’ from a factory under a controlled condition will not come within the purview of the definition of “Agricultural Income” HELD THAT:- Petitioner is permitted to serve the Central Agency representing the Revenue in this Court. There shall be no recovery from the petitioner pursuant to the impugned order. 'Issue notice, returnable in four weeks.' The Court granted interim relief permitting the petitioner to serve the Central Agency representing the Revenue in this Court and stayed enforcement of the challenged direction: 'there shall be no recovery from the petitioner pursuant to the impugned order.' The orders are procedural and interlocutory, providing the petitioner temporary protection from any recovery actions while the matter is placed on the Court's docket for further consideration within the four-week returnable period.