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Tax Publishers
Nadeem Mohd. Abdul v. ITO [ITA No. 25/Hyd/2020,
dt. 28-1-2021] : 2021 TaxPub(DT) 578 (Hyd-Trib)
Income from agriculture -- Rental income from lease of land
for agricultural operations
Facts:
Assessee returned substantial agricultural income which on
scrutiny under section 143(2) revealed that he had leased large tract of lands
and leased these to a company called Adisa Agro Pvt. Ltd. who were into
commercial farming of aromatic and medicinal plants. It was thus alleged by the
assessing officer and by the Commissioner (Appeals) that the income was not
agricultural income per se and it ought to have been assessed as income from
other sources. On further appeal by the assessee --
Held in favour of the assessee that the definition of
agricultural income under section 2(1A) covers any rent or revenue derived by
land which is situated in India and used for agricultural purposes. The
assessee need not carry on the agricultural activity or operations by himself
in the first place. Even passive income from renting for agriculture is
agricultural income. The order of the Commissioner (Appeals) upholding that it
was income from other sources deserves to be dismissed.
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