Income From Nursery Activities Of Growing Various Types Of Lawns, Flower Plants And Vegetable Plants Is Agricultural In Nature: ITAT
Mariya Paliwala
1 Oct 2023 3:30 AM GMT
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that income from nursery activities such as growing various types of lawns, flower plants, and vegetable plants is agricultural in nature.The bench of Suchitra Kamble (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the activity of an agricultural nature in respect of engaging in nursery activities...
The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has held that income from nursery activities such as growing various types of lawns, flower plants, and vegetable plants is agricultural in nature.
The bench of Suchitra Kamble (Judicial Member) and Annapurna Gupta (Accountant Member) has observed that the activity of an agricultural nature in respect of engaging in nursery activities of growing various types of lawns, flower plants, and vegetable plants cannot be considered a commercial activity for treating it as business income.
The appellant/assessee filed a return of income for the assessment year (A.Y.) 2013–14, showing total income along with agricultural income. The case of the assessee was selected for scrutiny. Various notices under Sections 143(2) and 142(1) were issued from time to time and served upon the assessee.
During the assessment proceedings, the assessee claimed that the agricultural income was declared in return for income due to oversight.
The Assessing Officer made an addition in respect of income from other sources along with an addition under the heading ‘income from other sources’ and also made an addition of Rs. 8,90,040 in respect of business income.
The Assessing Officer also took into account agricultural income of Rs. 85,42,750 out of the agricultural income, treated it as business income from income sources, and assessed the agricultural income. The assessee maintained books of accounts and relevant documents, and the details were submitted during the course of the assessment proceedings.
The tribunal held that with respect to agricultural expenses, the assessee has shown the sales bills of all the parties, including M/s. Green Leaf, and at no point in time, the Assessing Officer dispute that the agricultural income was, in fact, commercial activities related to business income.
Counsel For Appellant: Mehul K. Patel
Counsel For Respondent: Rohit Asudani
Case Title: Talshibhai B Narola Versus The Income Tax Officer
Case No.: ITA No.1689/Ahd/2018
