Compensation for Loss of Trees is agricultural income

Flower valley Agro Tech Pvt. Ltd Vs ITO (ITAT Mumbai) We find that certain trees lying on assessee’s land were cut since the same were obstructing the hire tension wires of the Electricity Company. For the same, the assessee was compensated for Rs.10.14 Lacs during the year. We observe that the assessee was engaged in the business of manufacturing and trading of essential oil, plantations & extraction of essential oils. Therefore, the trees so cut by the assessee would form part of its trading operations since the assessee would be earning revenue by utilizing these trees. Had the trees ...