TaxTMI 
TaxTMI 
2014 (12) TMI 799
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.... that the assessee had filed return declaring net taxable income at nil. In Assessment year 2003-04 in the computation of income the assessee had shown income of Rs. 205, 120/- from growing of Mashroom which was claimed as agricultural income and was therefore exempt from tax. 5. It seems the appeal of the assessee was dismissed by the ld. CIT(A), Panchkula and the assessee preferred an appeal before the Tribunal. The Tribunal remanded the issue back to the file of Assessing officer in ITA No. 310/Chd/2008 and relevant para of the order has been extracted by the Assessing officer in Assessment year 2004-05 which is as under: "I have found force in this argument of eh assessee but still to be fair to both the sides, specially when all the details were not furnished during assessment proceedings, it will be fair if the Assessing officer is directed to examine the details of any furnished by the assessee and thhen to take decision in accordance with law. Needless to mention here that due opportunity be provided to the assessee. Consequently all these grounds of the assessee are sent to the file of Assessing officer for fresh adjudication, therefore this appeal of the assessee is all....
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....own or such part thereof was suitable for being nurtured in a pot with water or by placing them in the greenhouse or in shade or after performing several operations such as weeding, watering, manuring etc. and are made ready for sale, all these operations are agricultural operation and the plants are product of agriculture. The assessee was carrying on business of a nursery and various types of fruit plants, flower plants, vegetable plants and seedlings on scientific basis, grow plants on prepared beds and after several operations carried out on the land viz. cutting , gootying and inarching they were transplanted in suitable container including pots and kept in the greenhouse in shade and then sold. The assessee claimed that the income derived from the sale of plants in pots." Further reliance was placed on certain judgments. The Assessing Officer observed that the cases relied on by the assessee are on different facts. He observed that for growing of mushrooms, wooden casing filled with compost is stacked in the rooms under controlled temperature. The activity performed by the assessee is no way in the nature of cultivation and hence not covered within the definition of 'ag....
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....been provided stating that such information is not available and therefore case should be kept pending. 9. On the other hand, the ld. DR for the revenue strongly supported the order of Assessing Officer and the ld. CIT(A). 10. We have considered the rival submissions carefully. As far as information from the Ministry of Finance, CBDT is concerned, relevant letter reads as under: "F. No. 173/148/2014-ITA-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (IT A-I Division) New Delhi, the Oct, 2014 To Shri Chander Mohan Luthra Classic Mushroom Farm Near Chitta Mandir Yamunanagar Haryana - 135001 Sub: Information sought under Right to Information Act, 2005 Sir, I am directed to refer to your RTI application dated 5.8.2014 received in this office on 16.9.2014 on the above-mentioned subject. 2 With respect to query raised in your RTI application, it may be noted that the said information is not available in this office. 3 If you are not satisfied with the reply, you may file an appeal with the first appellate authority i.e. Deputy Secretary (ITAI), Central Board of Direct Taxes, Department of Revenue, North Block, New Delhi -....
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....of rent-in-kind of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render the produce raised or received by him fit to be taken to market; or (iii) the sale by a cultivator or receiver of rent-in-kind of the produce raised or received by him, in respect of which no process has been performed other than a process of the nature described in paragraph (ii) of this sub-clause ; (c) any income derived from any building owned and occupied by the receiver of the rent or revenue of any such land, or occupied by the cultivator or the receiver of rent-in-kind, of any land with respect to which, or the produce of which, any process mentioned in paragraphs (ii) and (iii) of sub- clause (b) is carried on : Provided that- (i) the building is on or in the immediate vicinity of the land, and is a building which the receiver of the rent or revenue or the cultivator, or the receiver of rent-in-kind, by reason of his connection with the land, requires as a dwelling house, or as a storehouse, or other outbuilding, and (ii) the land is either assessed to land revenue in India or is subject to a local rate assessed and collected by officers of the Government as such o....
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....ated decision of Supreme Court in case of Raja Benoy Kumar Sahas Roy (supra). In this case it was observed as under: '"Agriculture" in its primary sense denotes the cultivation of the field and is restricted to cultivation of the land in the strict sense of the term, meaning thereby tilling of the land, sowing of the seeds, planting and similar operations on the land. These are basic operations and require the expenditure of human skill and labour upon the land itself. Those operations which the agriculturist has to resort to and which are absolutely necessary for the purpose of effectively raising produce from the land, operations which are to be performed after the produce sprouts from the land e.g. weeding, digging the soil around the growth, removal of undesirable undergrowth, and all operations which foster the growth and preservation of the same not only from insects and pests but also from depredation from outside, tending, pruning, cutting, harvesting and rendering the produce fit for the market would all be agricultural operations when taken in conjunction with the basic operations. The human labour and skill spent in the performance of these subsequent operations ca....