https://www.taxtmi.com/caselaws?id=380115 Receipts from sale of spontaneous growth trees sold to clear land for further cultivation were held to be capital in nature, because the trees were removed as an impediment to cultivation and there was no object or real prospect of regeneration. The Tribunal applied the settled principle that such receipts are not taxable as business income where the sale is incidental to land clearing rather than a profit-making operation. It also held that section 55(2)(a) does not extend to spontaneous growth trees merely because the cost of acquisition is nil, so no capital gains charge arose. The addition was deleted and the lower appellate order was upheld. en-us Wed, 08 May 2019 00:00:00 +0530 Mon, 13 May 2019 15:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380115 Receipts from sale of spontaneous growth trees sold to clear land for further cultivation were held to be capital in nature, because the trees were removed as an impediment to cultivation and there was no object or real prospect of regeneration. The Tribunal applied the settled principle that such receipts are not taxable as business income where the sale is incidental to land clearing rather than a profit-making operation. It also held that section 55(2)(a) does not extend to spontaneous growth trees merely because the cost of acquisition is nil, so no capital gains charge arose. The addition was deleted and the lower appellate order was upheld. Case-Laws Income Tax Wed, 08 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380115