Income from sale of cocoons cannot be regarded as agricultural income

Shri. B. S. Byregowda (HUF) Vs ITO (ITAT Bangalore) Income from sale of cocoons cannot be regarded as agricultural income in view of the decision of the Hon’ble Apex Court in the case of K. Lakshmanan & Co. Vs. CIT (2000) 108 Taxman 167 (SC); wherein it was held that income derived by the assessee from sale of cocoons raised by it by feeding mulberry leaves to silkworms is not agricultural income. In the case on hand, the AO has considered income from sericulture at Rs.1,92,240/- and 50% thereof viz., Rs.96,120/- as income derived from cultivation of mulberry plants. It has already been ...