DCIT Vs Vibha Agrotech Ltd. (ITAT Hyderabad)
ITAT Hyderabad held that exemption under section 10(1) of the Income Tax Act towards income derived from sale of foundation seeds as agricultural income allowed. Accordingly, appeal of revenue dismissed and order of CIT(A) upheld.
Facts- The assessee company is engaged in the business of research, cultivation, production and marketing of hybrid seeds. AO after considering the submissions of the assessee, rejected the agricultural income claimed towards sale of foundation seeds. Accordingly, AO rejected the claim of agriculture income and made addition of Rs.67,08,72,176/-to the total income of the assessee company. CIT(A) deleted the addition made by AO towards disallowance of agriculture income. Accordingly, being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that there is no difference between the facts considered by the Assessing Officer for the year under consideration and facts considered by the Tribunal for the earlier assessment years in respect of exempt income claimed by the assessee towards agriculture income being income derived from sale of foundation seeds. Since, there is no difference in facts, when compared to the earlier years, in our considered view, there is no error in the reasons given by the learned CIT(A) to allow exemption claimed by the assessee under section 10(1) of the Act towards income derived from sale of foundation seeds as agricultural income. Thus, we are inclined to uphold the findings of the learned CIT(A) and dismiss the appeal filed by the Revenue.
