AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 1082
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....sioner of Income Tax (Appeals) is not justified in confirming the order of the Assessing Officer, who treated the sum of Rs. 29,09,280 as non-agricultural income. 3. The learned Commissioner of Income Tax (Appeals) failed to appreciate the fact that the income earned on leasing out agricultural land is agricultural income. 4. The view/observation of the learned Commissioner of Income Tax (Appeals) in para 7.14 of the appellate order that the appellant is not primarily an agriculturist etc., is not relevant for determination whether the appellant's activity is agricultural or not. 5. The learned Commissioner of Income Tax (Appeals) failed to appreciate the fact that the lessee-company did agricultural activities to grow aromatic....
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....ne Avula Sreenu (lessor) vide lease deed dated 22nd July, 2013. Thus, a total agricultural land of 41.15 acres situated at different places have been leased out by the assessee to a company by name Adisa Agro Pvt. Ltd, Mumbai, vide lease deed dated 30th Sept.2013. He observed from the copies of Khasra Pahani produced by the assessee, that they did not specify any crop details. The AO also observed that the assessee also did not produce any evidence regarding the growing of any crops during the period relevant to the A.Y 2015-16 such as details of the parties from whom fertilizer, seeds etc., were procured and also the details of the parties to whom agricultural produce were sold and other details relating to the expenditure which is likely ....
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....e further submitted that the lease deed entered into with Adisa Agro (P) Ltd also mentions the agricultural operations having been carried on by the assessee and also the infrastructure created by him for carrying on such activity and there is no dispute with regard to the same. He submitted that the CIT (A) has disallowed the claim of agricultural income by holding that the assessee has utilized the agricultural land for growing commercial crops such as 'Aromatic and Medicinal plants' and therefore, it cannot be treated as agricultural operations. He submitted that this finding of the CIT (A) is contrary to his finding subsequently that the assessee himself has not carried on any agricultural activity. He further submitted that the case la....
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....dicinal plants in these lands and the lessee agreed to pay the lessor higher percentage in view of the crops already grown by the lessor. Therefore, the assessee has also carried on certain agricultural operations in the lands which have been leased out by the assessee. 8. As regards the agricultural operations carried on by Adisa Agro (P) Ltd during the relevant period is concerned, there is no information available on record nor is there any dispute raised by the authorities below, except for a finding by the CIT (A) in Para 7.23, that there is no evidence on record to state that the company had actually utilized the land wholly and exclusively for the purpose of cultivating on its own rather than sub-leasing it to outside parties. There....
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....ided 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 store- house, or other out- building, 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 or where the land is not so assessed to land revenue or subject to a local rate, it is not situated- (A) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee....
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.... assessee are to be treated as agricultural land provided other conditions are satisfied. Further, not only the revenue, but even the rent for the land which is used for agricultural purposes is to be treated as 'agricultural income'. The A.Y relevant for this case is A.Y 2015- 16, whereas the lease deed entered by the assessee with Adisa Agro (P) Ltd is September, 2013 i.e. A.Y 2014-15. From the lease deed, it is seen that the assessee had carried on agricultural operations during the previous year i.e. 2013-14 relevant to the A.Y 2014-15 and thereafter, the assessee has leased out this land to Adisa Agro (P) Ltd on 30.09.2013 i.e. during the previous year 2014-15 relevant to the A.Y 2015-16. Therefore, the assessee had carried on agricult....