2015 (2) TMI 67

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....h, in ITA Nos. 860/Rjt/04, 861/Rjt/04, 862/Rjt/04, 863/Rjt/04, 864/Rjt/04, 865/Rjt/04, 866/Rjt/04, 867/Rjt/04, 868/Rjt/04 for AY 1990-91, 1991-92, 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, 1997-98, 1998-99. 2.1 While admitting these appeals on 27.06.2007, this Court has framed the following substantial question of law: "Whether on facts and circumstances of the case the Income Tax Appellate Tribunal was right in law and on facts in holding that the activity of growing roses, chikkus is an agricultural income exempt from tax?" 3. The facts of the present case are that during the course of assessment proceedings, the Assessing Officer observed that the income from nursery was not allowable as exempt income since the same could not be....

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....t the basic operations upon the land i.e., tilling of the land, sowing of the seeds planting, etc. requiring the expenditure of human skill and labour upon the land, it cannot be said that the income earned by the assessee is agricultural income. Further, it is also clear that subsequent operations would also be agricultural operations if taken in conjunction with basic operations. However, subsequent operations by itself would not be considered as agricultural operations. Hence, if any income is earned by carrying out the subsequent operations without carrying out the basic operations then such income would not be considered as agricultural income. The gist of the decisions cited hereinabove further declares that the nature of the product ....