Case Law Details
Shri. B. S. Byregowda (HUF) Vs ITO (ITAT Bangalore)
Income from sale of cocoons cannot be regarded as agricultural income in view of the decision of the Hon’ble Apex Court in the case of K. Lakshmanan & Co. Vs. CIT (2000) 108 Taxman 167 (SC); wherein it was held that income derived by the assessee from sale of cocoons raised by it by feeding mulberry leaves to silkworms is not agricultural income. In the case on hand, the AO has considered income from sericulture at Rs.1,92,240/- and 50% thereof viz., Rs.96,120/- as income derived from cultivation of mulberry plants. It has already been held in this order that the AO was not correct in estimating, both the agricultural income as well as the expenditure thereon, when the facts on record establish that the assessee HUF had carried on agricultural operations; including the growing of Mulberry plants and sericulture; during the year under consideration. In the facts and circumstances of the case, as discussed above, on this issue, the income from sericulture as declared by the assessee amounting to Rs.15,42,199/- is to be accepted and 50% thereof, amounting to Rs.7,71,100/- is held to be attributable to the sale of cocoons, which is chargeable to tax.
FULL TEXT OF THE ITAT JUDGEMENT
This appeal by the assessee is directed against the order of CIT(A)-3, Bangalore, dated 01.01.2019 for Assessment Year 2014-15.
2. Briefly stated, the facts of the case are as under:
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