TaxTMI 
TaxTMI 
2020 (9) TMI 73
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....l income as against the Assessing Officer (AO) treating the same as business income. 3. Succinctly, the facts of the case are that the assessee is engaged in the business of agricultural activities of growing and selling the flower plants mainly for export purpose. A return was filed declaring total income of Rs. 62,69,340. During the course of the assessment proceedings, the AO observed that the assessee earned total profit of Rs. 6.29 crore on total sales of Rs. 18.30 crore. After making certain adjustments, income of Rs. 5,66,86,518 was computed, which was claimed as exempt u/s.10(1) r.w.s. 2(1A) of the Income-tax Act, 1961 (hereinafter also called 'the Act'). On being called upon to explain as to why the income of Rs. 5.66 crore shoul....
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....in a nursery shall be deemed to be agricultural income". The Tribunal further relied on CBDT Circular No.01/2009 dated 27-03-2009 explaining the rationale of Explanation 3. It is seen that similar issue once again came up for consideration before the Tribunal in assessee's own case for A.Y. 2013-14. A copy of such order has also been placed on record in which the earlier view has been reiterated. The ld. DR fairly conceded that the facts and circumstances of the instant case are mutatis mutandis similar to those of the earlier years. Since the issue under consideration is fully covered by the orders passed by the Tribunal for the preceding years, respectfully following the precedent, we countenance the view taken by the ld. CIT(A). This iss....
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....wance of depreciation for the year under consideration. 7. The first four grounds taken by the assessee in its Cross Objection are only against the observations made by the AO in treating income from operations as business income as against agricultural income. In view of our decision in upholding the impugned order treating the income from business operations as agricultural income, such grounds have been rendered academic in nature. 8. The only other issue raised by the assessee is against the claim of Foreign Exchange Gain held to be taxable. 9. The factual matrix of this ground is that the assessee credited a sum of Rs. 54,84,571/- to its Profit and loss account as Foreign Exchange Fluctuation Gain. The AO held such gain to be in the....