TaxTMI 
TaxTMI 
1985 (3) TMI 8
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....these applications filed under section 256(2) of the Income-tax Act, 1961, seeks a direction to the Tribunal to state a case and refer the following question as arising from the order of the Tribunal: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding and had valid materials to hold that the sale consideration of albezia trees was in the na....
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....ia trees as capital gains. The assessee took the matter in appeal to the Commissioner of Income-tax (Appeals) against the reassessments made by the Income-tax Officer. Before the Appellate Assistant Commissioner, the assessee contended that since receipts from the sale of trees constituted agricultural income taxable under the Agricultural Income-tax Act, the same was not assessable as capital gai....
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.... that on the finding rendered by the Agricultural Income-tax Appellate Tribunal that the sale proceeds from the disposal of shade trees represented agricultural income, that could not be taxed as capital gains under the Income-tax Act (sic). The Tribunal allowed the appeals of the assessee and deleted the capital gains assessed to tax by the Income-tax Officer for the three assessment years on the....
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....the sale proceeds of albezia trees are revenue receipts and, therefore, taxable under the provisions of the Agricultural Income-tax Act, as agricultural income, thus upholding the view of the Agricultural Income-tax Officer. Once the sale value of the trees is treated and assessed as agricultural income under the provisions of the Agricultural Income-tax Act, the same cannot be treated as capital ....