https://www.taxtmi.com/caselaws?id=175735 Profit from the purchase and resale of a standing crop is not agricultural income where the trader has no interest in the land. Agricultural income under the Act must be derived from land by agriculture, and the relevant enquiry is the effective source of the income. A buyer of standing tobacco acquires only contractual rights to enter, harvest and remove the crop; those incidental operations do not create an agricultural nexus. The gain arises from trading activity, namely purchase at a favourable price and resale at a higher price, so it is taxable business income rather than exempt agricultural income. en-us Fri, 16 Mar 1951 00:00:00 +0530 Fri, 04 Dec 2015 10:53:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=175735 Profit from the purchase and resale of a standing crop is not agricultural income where the trader has no interest in the land. Agricultural income under the Act must be derived from land by agriculture, and the relevant enquiry is the effective source of the income. A buyer of standing tobacco acquires only contractual rights to enter, harvest and remove the crop; those incidental operations do not create an agricultural nexus. The gain arises from trading activity, namely purchase at a favourable price and resale at a higher price, so it is taxable business income rather than exempt agricultural income. Case-Laws Income Tax Fri, 16 Mar 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=175735