2010 (10) TMI 1034 - HC - Income Tax

Summary

Issues involved: Determination of whether the sale consideration of poplar trees qualifies as agricultural income for the assessment year 2001-02.

Summary:

Issue 1: Assessment of sale consideration of poplar trees as agricultural income
The respondent filed a return claiming the sale consideration of poplar trees as agricultural income for the assessment year 2001-02. The Assessing Officer did not accept this transaction and assessed it as income of the respondent. The Commissioner of Income Tax (Appeal) allowed the appeal, holding that the trees were grown by the respondent and accepted the transaction of sale.

Issue 2: Appeal before the Income Tax Appellate Tribunal
The Department filed an appeal before the Income Tax Appellate Tribunal, Lucknow Bench, Lucknow, challenging the decision of the Commissioner of Income Tax (Appeal). The Tribunal dismissed the appeal on 30.3.2007, upholding the finding that the transaction of sale of poplar trees was genuine.

Judgement:
The High Court, after hearing both counsels, noted that the Commissioner of Income Tax (Appeal) had found the transaction of sale of poplar trees to be genuine, a finding which was upheld by the Tribunal. The Court observed that the appellant did not dispute that the sale of trees did not qualify as agricultural income. Therefore, the Court dismissed the appeal, affirming the decision of the lower authorities.