Case Law Details
Doloo Tea Company (India) Ltd Vs ACIT (ITAT Kolkata)
Admittedly, in this case in hand, the land has already been treated as agricultural land not capital in nature and the tea bushes have been cultivated by the assessee to obtain tea leaves and the shade trees are grown by the assessee for the protection of its tea crops. In our view, not only the tea leaves but the entire plant i.e. tea bushes is the agricultural produce and the shade trees has also been grown and cultivated by the assessee which is a part of its activity to grow and protect tea crops. In view of this, the action of the lower authorities in taxing compensation received on account of sale of tea bushes and shade trees cannot be held to be justified. The addition made by the lower authorities by taxing the sale of tea bushes and shade trees is ordered to be deleted.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
The present appeal has been preferred by the assessee against the order dated 01.12.2019 of the Commissioner of Income Tax (Appeals)-17, Kolkata (hereinafter referred to as the ‘CIT(A)’) passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee in this appeal has taken the following grounds of appeal:
“1. That the Ld. CIT(A) erred in considering the receipt of Rs. 75,84,192/- from NHAI as business income without appreciating the fact that the same was on account of sale of Tea bushes, which is duly exempted u/s 10 of the IT Act,1961.
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