2018 (9) TMI 534

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....tion of Rs. 38,31,518/-made by the A.O. as disallowance of Agricultural income. 2. The Ld. CIT(A) was not justified to ignore the nature of income from sale of agricultural produce, i.e. , sugarcane seeds grown by the assessee from the lease hold land carrying out basic operation on land involving expenditure of human skill such as ploughing, tilling, sowing and planting of seeds. Moreover, subsequent operations such as watering, application of manure and insecticides, cutting, etc. were also carried by the assessee and in the process expenses were incurred. Evidence of expenses were submitted during the period of hearing. 3. The assessee received gross agricultural income of Rs. 47,32,198/- from sale and supply of seeds f....

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.... income from agricultural land by deployment of agricultural process and sale of agricultural produce. Hence, the income is well covered under Section 2(1A) of the Income Tax Act and the same is exempted u/s 10(1) of the I.T.Act. Thus, it cannot be disputed that the seed is the product of agricultural activity and the seed cannot be sold commercially, unless it is produced by agricultural activity. In this regard, reliance is placed on the decision of the jurisdictional High Court, i.e. the Honourable Andhra Pradesh High Court in "CIT Vs. Prabhat Agri Biotech Limited", IT.T.A.No.88 of 2014 dated 21- 02-2014. The Appellant accordingly prays for granting the exemption under Section 10(1) of the Act in respect of the agricult....

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....f Rs. 38,31,518/- can not be added back to the Income of the assessee. Therefore, the addition of total sum of Rs. 38,31,518/-as income is purely unjust and arbitrary which should be deleted in the facts & circumstances of the case. 6. That during the course of hearing the assessee had submitted every details as desired regarding the agricultural income during the course of hearing before CIT (A). 7. The order of the assessment as well as the appellant order is against law, weight of evidences and probabilities of the case. 8. For these other reasons to be argued at the time of the hearing the order of assessment shall be squashed to meet the end of the Justice. 3. The facts in brief are that the assessee deriv....

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....and perused the material on record. Prima facie, we found that the similar disputed issue was dealt by this bench of the Tribunal in the case of Smt. Asha Manjari Mishra, in ITA No.79&80/CTK/2018 for the assessment years 2013-2014 & 2014-2015, order dated 06.09.2018, wherein the Tribunal observed as under :- "8. After hearing the rival submissions and perusing the materials available on record, we find that the CIT(A) has followed the decision of the Tribunal in assessee's own case for the assessment year 2010-2011, wherein, the claim of agricultural income of the assessee was negated and same was treated as income from other sources. 9. Although the ld A.R. has filed two paper books for the assessment year 2013-14 contain....