2015 (12) TMI 1913

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....pted the profit as per the profit and loss account appropriation account. As against this, assessee in its cross objection states that its income was agricultural in nature and exempt u/s. 10(1) of the Act. 03. In the cross objection, assessee has taken certain other grounds also relating to disallowance of claim of depreciation and disallowance of its claim u/s. 35 of the Act. 04. The claim of assessee that its income was exempt u/s. 10(1) of the Act if accepted, would render the other grounds raised by both the Revenue and the assessee insignificant. Therefore this ground appearing in assessee's cross objection is considered first for disposal. 05. Assessee a biotechnology company had filed its return declaring nil income. In the profi....

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....ount. 07. Aggrieved assessee moved in appeal before the CIT (A). As per the assessee, its claim that its income was agricultural in nature was wrongfully rejected by the AO. In any case, as per the assessee nothing stopped the CIT (A) from entertaining this claim. Assessee pointed out to the CIT (A) that the limitations placed by the Hon'ble Apex Court through its judgment in Goetze (India) Ltd v. CIT [(2006) 284 ITR 323] was only on the AO and appellate authorities were free to consider such claims made by the assessee. Assessee also made submissions on merits, assailing the disallowance of depreciation and R & D expenditure. Assessee also put up a claim before the CIT (A) that profit as per the P & L account alone should be considered fo....

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....x19 shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and *subject to the provisions (including provisions for the levy of additional income-tax) of, this Act in respect of the total income of the previous year of every person : Provided thatwhere by virtue of any provision of this Act income-tax is to be charged in respect of the income of a period other than the previous year, income-tax shall be charged accordingly. 12. A reading of the above clearly show that the charge of tax is on total income. Agricultural income is exempt u/s. 10(1) of the Act which falls in Chapter III of the Act. Heading of Chapter III is "Incomes which do not....