9911796707
TMI Blog2013 (11) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... by issue of notice under sections 143(2) and 142(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") on May 5, 2008. The assessee, in the relevant period, entered into a lease agreement on September 15, 2005 with Sri S.N. Harish, one of the directors of the assessee-company, for taking 20 acres of land on lease. Before the Assessing Officer, the assessee contended that it had generated income from this land through agricultural activity and therefore this income was exempt. The Assessing Officer, however, did not agree with the assessee's contention as he was of the opinion that in view of the provisions of the Karnataka Land Reforms Act, 1961, in section 79(b), thereof, the assessee could neither hold agricultural land no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lease agreement. 3. The Commissioner of Income-tax (Appeals) erred in treating this income as agricultural income despite the company carrying out agriculture as a commercial activity which is in the nature of contract farming and such income takes a character of business income. 4. For these and other grounds that may be urged at the time of hearing, it is prayed that the order of the Commissioner of Incometax (Appeals) in so far as it relates to the above ground may be reversed and that of the Assessing Officer may be restored. 5. The appellant craves leave to add, alter, amend and/or delete any of the grounds mentioned above." The grounds raised at S. Nos. 1, 4 and 5 are general in nature and therefore no adjudication is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhumidars of land for not only filling and clearing but also for sowing, growing and protecting crops have been held to be agricultural income though the assessee in fact was not the owner of the land. (iii) CIT v. All India Tea and Trading Co. Ltd. [1978] 113 ITR 545 (Cal) wherein it was held that where the effective source is the land, the income has to be agricultural. (iv) Advanta India Ltd. v. Deputy CIT [2010] 5 ITR (Trib) 57 (Bang). We have heard both parties and carefully perused and considered the material on record including the judicial pronouncements relied on by the assessee and the authorities below. It appears from the order of the assessment that the Assessing Officer was of the view that the assessee owned land when in f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the considered opinion that the facts of the case and the finding of the co-ordinate Bench of the Bangalore Tribunal in the case of Advanta India Ltd. [2010] 5 ITR (Trib) 57 (Bang) are squarely applicable to the case on hand. In the case of Advanta India Ltd., it was held that "the immediate source of the income is agricultural operation conducted by the assessee on the land and land alone and consequently the same is liable to be treated only as agricultural income". This is an established fact in the instant case of the assessee also. We agree with the view of the learned Commissioner of Income-tax (Appeals) that the Assessing Officer's contention that the assessee cannot own agricultural land, as per the Karnataka Land Reforms Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
