Court noted that basic requirement of Sec.53A of TPA is a written agreement and Sec.2(47)(v) can be invoked only if conditions laid out in Sec.53A are fulfilled. In the instant case there was neither any written agreement between the Assessee and builder nor any consideration received by her thus 53A of TPA can’t come into play as a result of which 2(47)(v) can’t be invoked. Thus it held that there was no transfer in the instant case within the meaning of Sec.2(47)(v) of the Act and since there is no transfer, question of resulting profit and capital gain doesn’t arise.
The question brought before us by the Revenue is, as to whether the income from sale of plants grown directly in the pots and the sale of seeds, can be treated as agricultural income within the meaning of section 2(1) of the Income-tax Act, 1961? The finding of the Tribunal is that the plants were not grown in the pots directly, but they are, after several operations carried out in the land, viz., cutting, gootying and inarching for the plants, transplanted in suitable containers, including pots and kept in the green house or in shade, and the trees were grown on the land directly.
Depending on the facts, nursery income may or may not be agricultural income. We are giving here two HC judgements that will help you. You can always file a return for AY 07-08 claiming nursery income as agriculture income(if facts permit so) and this would not be concealment or furnishing inaccurate particulars of income.
TAXING a non-resident has always been challenging, and wherever possible the law has provided adequate safeguard for the Revenue. That is how Sec 163 came into being. The issue here is: If a non-resident is assessed independently, can its agent in India be also assessed as Representative Assessee for the same income u/s 163?
