Silver Oak Shade Trees in Tea Estates Generate Agricultural Income, Not Capital Gains

Syed Mohamed Sathik Ali Vs ITO (ITAT Chennai)

Chennai Tribunal examined whether income from sale of Silver Oak trees could be taxed as capital gains. AO assessed total income at ₹17,86,320 by denying Assessee’s claim of ₹12,08,520 as agricultural income & treating sale of cut Silver Oak trees as capital gains. CIT(A) confirmed the view.

Assessee argued that Silver Oak trees are shade trees in tea estates, not of spontaneous growth, but planted, nurtured, periodically maintained & cut, thus constituting agricultural produce. Tri

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