Growing of hybrid seeds is Agricultural Activity

DCIT Vs Genuine Seeds Pvt. Ltd (ITAT Pune)

The CIT(A) while deciding the issue in the present case had in turn, relied on the decision of Pune Bench of Tribunal in ACIT Vs. Ajeet Seeds Ltd. (supra), which has been confirmed by the Hon’ble High Court. Consequently, we hold that growing of hybrid seeds in the case of assessee can never be held to be non-agricultural activity. Hence, the assessee is entitled to claim deduction under section 10(1) of the Act.

FULL TEXT OF THE ITAT JUDGEMENT

Both the appeals filed by Revenue are against separate orders of CIT(A)-1, Pune, dated 21.09.2016 and 13.01.2017 relating to assessment years 2012-13 and 2013-14 against respective orders passed under section 143(3) / 250 of the Income-tax Act, 1961 (in short ‘the Act’).

2. Both the appeals filed by Revenue relating to the same assessee on similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, in order to adjudicate the issues, reference is being made to the facts and issues in ITA No. 2754/PUN/2016, relating to assessment year 2012-13.

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