Sapling is not tea hence not chargeable to tax under Bengal Agricultural Income Tax Act: Calcutta HC

Gouranga Parbati Tea Co. Pvt. Ltd. Vs. Agricultural Income Tax Officer & Ors. (Calcutta High Court) Calcutta High Court held that Sapling is a young plant which is neither known nor is used as “tea”. Thus, sapling are not “tea” and thus are outside the scope of charging section 3 of the Bengal Agricultural Income Tax Act, 1944 and hence not liable to tax. Facts- The petitioner is engaged in business of producing green tea leaves and pays agricultural income tax on the income derived from the sale of such tea. AO sought to levy tax on sale of saplings and computed depreciation in ac...