https://www.taxtmi.com/caselaws?id=7344 Receipts from the sale of teak trees planted for commercial income were treated as revenue, not capital, because the sale proceeds arose from the income-yielding plantation activity and the manner of uprooting did not change their character. Expenditure incurred in earlier years for planting and maintaining the plantation was held deductible on commercial principles, as it was wholly directed to earning the eventual agricultural income; only notional interest on the assessee's own funds was disallowed. The assessment was therefore to be recomputed, with the tree-sale receipts taxed as income and the plantation and maintenance costs allowed to the extent recognised. en-us Wed, 21 Aug 1968 00:00:00 +0530 Wed, 18 Feb 2009 09:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7344 Receipts from the sale of teak trees planted for commercial income were treated as revenue, not capital, because the sale proceeds arose from the income-yielding plantation activity and the manner of uprooting did not change their character. Expenditure incurred in earlier years for planting and maintaining the plantation was held deductible on commercial principles, as it was wholly directed to earning the eventual agricultural income; only notional interest on the assessee's own funds was disallowed. The assessment was therefore to be recomputed, with the tree-sale receipts taxed as income and the plantation and maintenance costs allowed to the extent recognised. Case-Laws Income Tax Wed, 21 Aug 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7344