Cultivation of high quality foundation seeds of peas, wheat, paddy & potato is agricultural activity

Malook Singh Vs PCIT (ITAT Delhi)

CIT(A) held that cultivation of high quality foundation seeds of peas, wheat, paddy and potato is different from normal agricultural activity. Against this, the assessee has submitted all the bills & vouchers for expenses like lease rent, power bills, fertilizer, seeds, labour, wages and details of sale and mandi receipts. Copy of the kashra for the Fasli Varsh for the corresponding year have been produced. Copy of the report of the Tehsildar and the Lekh Pal have been submitted before the authorities to prove the fact of doing agricultural operations. The same have been examined by the AO during the assessment proceedings. The area wise details of each crop, quantity of yield, details of sales have been provided before the AO during the assessment proceedings. Most importantly, the similar income from the same agricultural operations and sale thereof has been considered as agricultural income in the earlier Assessment Years as well as in the subsequent Assessment Years. Hence, in view of the entire facts of the case, the appeal of the assessee is liable to be allowed on procedural technicalities as well as on merits of the issue.

FULL TEXT OF THE ORDER OF ITAT DELHI

The present appeals have been filed by the assessee against the orders of ld. Pr. CIT, Ghaziabad dated 02.03.2021.

2. Since, the issues involved in both the appeals are identical, they were heard together and being adjudicated by a common order.

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