Agricultural income-Manufacture and sale of tea-Whether agricultural produce-Section 2(1)-Regarding

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....sp;  All Commissioners of Income-tax. Sir, Subject:  Agricultural income-Manufacture and sale of tea-Whether agricultural produce-Section 2(1)-Regarding. Section 2(1) of the I.T. Act, 1961, defines "agricultural income", inter alia, to mean any rent or revenue derived from land which is situated in India and is used for agricultural purposes. Further, any income derived from suc....

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....l produce grown by himself and, therefore, the sales were not exigible to sales tax. It was common ground that tea leaves had been put through the process of withering, crushing, roasting and fermentation before being packed and sold by the assessee. The Supreme Court held that the tea leaves did not cease to be an agricultural produce merely because of the performance by the assessee of the proce....

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....be noted that the power of the State Legislature to levy agricultural income-tax is derived from entry 46 of List II of the Seventh Schedule to the Constitution which refers to "Taxes on agricultural income". The term "agricultural income" has been defined in art. 366(1) of the constitution as meaning "agricultural income defined for the purposes of the enactments relating to Indian income-tax". T....