Coffee Income: Rule 7B Overrides Rule 7 – ITAT Remands for Segregation of Own vs Purchased Produce

Bennur Siddegowda Santhosh Vs ITO (ITAT Bangalore) Coffee Income: Rule 7B Overrides Rule 7 – ITAT Remands for Segregation of Own vs Purchased Produce In, the ITAT Bangalore held that Rule 7B (specific provision for coffee) prevails over Rule 7 (general provision) for computing income from coffee cultivation and processing. The assessee, a coffee grower and curer, claimed entire income as agricultural. However, the AO applied Rule 7B(1A) and treated 40% of income as business income, leading to addition. The assessee argued that Rule 7 should apply and also contended that part of coffee wa...