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TMI Blog2015 (9) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... eneration. For the year under consideration, it admitted income of Rs. 1,62,03,160/- and claimed deduction u/s. 80IA(2) of the Income Tax Act [Act] of Rs. 25,02,985/-. It declared an agriculture income of Rs. 37,54,466/- from the production of basic seeds and claimed exemption u/s. 10(1) of the Act. Assessing Officer (AO) disallowed the amount of Rs. 37,54,466/- on the reason that this is not agriculture income but income from business operations. The matter was carried to Ld.CIT(A) who following the order in earlier years, allowed assessee's contentions holding as under: "4.3 I have carefully considered the submissions of the appellant and the assessment order. This issue was already decided by my predecessor in the case of the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re us that right from the assessment year 2003-04 itself the same dispute with regard to the claim of exemption u/s 10(1) is going 017. It was submitted by the learned AR that the Income-tax Appellate Tribunal in its order passed in ITA No. 652/Hyd/2007 dated 2-9-2008 for assessment year 2003-04, ITA No.94/Hyd/2008 dated 8-8-2008 for the assessment year 2004-05, ITA No.l717/Hyd/2008 dated 9-11-2009 for the assessment year 2005-06, ITA No. 528/Hyd/10 dated 23-9-2010 for the assessment year 2006-07 and in ITA No. l214/Hyd/2010 and ITA 1215/Hyd/2010 dated 13-4- 2012 for the assessment years 2004-05 and 2007-08 have decided the issue in favour of the assessee by holding that the income generated on cultivation of basic/foundation seeds is agric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder: "4 .........Admittedly, the assessee is cultivating by performing agricultural operation in order to generate basic foundation seeds. The said foundation seeds were distributed to farmers for the purpose of generating further seeds. The learned representative for the assessee clarified that in respect of seeds which are purchased from other farmers, the assessee is not claiming any exemption u/s 10(1) of the IT Act. The assessee is admittedly claiming exemption u/s 10(1) in respect of basic foundation seeds which were generated by performing agricultural operation by the land by the assessee. This Tribunal in the assessee's own case for assessment year 2001-02 considered this issue and found that the assessee is entitled for e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is eligible for exemption u/s 10(1) of the Act and delete the addition of Rs. 37,54,466/-. 3. After considering the rival contentions, we do not see any reason to interfere with the order of the Ld.CIT(A). Not only that, the issue in earlier years was already crystalised in favour of assessee by the decision of the Hon'ble High Court of Judicature of Andhra Pradesh at Hyderabad in assessee's own case in ITA No. 88/2014 dt. 21-02-2014. Hon'ble High Court on similar questions raised in AY. 2008-09 has upheld the order of the ITAT in that year by stating as under: "We are unable to accept this farfetched idea that artificial production of seeds can be sold or used for commercial purpose. May be a few hybrid seeds could be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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