Rice is an agricultural produce exempt from disallowance u/s 40A(3) of Income Tax Act

ITO Vs Shivaji Hi-Tek Foods Pvt. Ltd (ITAT Chennai) ITAT Chennai held that rice being specified in schedule is covered within the definition of agricultural produce as per provision of Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987. Accordingly, as per Rule 6DD(e)(i) of the Income Tax Rules the same is exempt from disallowance under section 40A(3) of the Income Tax Act. Facts- The assessee being resident corporate assessee is engaged in purchases rice. The assessee purchases rice from various states and repacks the same in its own containers. The assessee made purchases from ...