2021 (6) TMI 1047

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.... 2. The one common point in both these appeals pertain to the question whether the profit from the sale of Jaggery falls within the definition of agricultural income. It is common knowledge that the expression "agricultural income" connotes any income derived from land by agricultural operations including processing of agricultural produce raised or received so as to render it fit for the market. It is sine qua non that the produce must retain its original character and the only change which is permitted in the produce would be that which makes it marketable. In the instant case, the sugarcane crops which were harvested by the appellant was converted into jaggery and the profit made out of the sale of jaggery was shown as agricultural inco....

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.... the U.P.Krishi Utpadan Adhiniyam, 1964. The other citations relied upon by him are not directly related to sugarcane or jaggery. 6. Per contra, Mr.M.Swaminathan, learned Senior Standing counsel assisted by Mrs.V.Pushpa, learned Standing Counsel contended that the nature of the commodity should remain the same even after the application of any process and the process in itself should be a necessary one to render the original commodity marketable. Reliance was placed on the decision in Banarsi Das Gupta Vs. Commissioner of Income Tax [1977] 106 TTR 804 (Allahabad) wherein the assessee had sold part of the sugarcane in its original form and the remaining was converted into jaggery claiming exemption for both the incomes. It was held that the....