DY. COMMISSIONER OF INCOME TAX , CIRCLE-2(1), HYDERABAD vs INVENTAA CHEMICALS LIMITED , HYDERABAD

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”: HYDERABAD

Before: SHRI SATBEER SINGH GODARA & SHRI LAXMI PRASAD SAHU

For Appellant: Shri S. Rama Rao

For Respondent: Shri Sunil Kumar Pandey, Shri S. Rama Rao

Hearing: 04/02/2021Pronounced: 25/02/2021

O R D E R PER BENCH:

This Revenue’s appeal for AY 2013-14 is directed against the CIT(A) - 7, Hyderabad’s order dated 12/11/2018 passed in Case No. 0261/CIT(A)-7/2016-17 involving proceedings u/s 143(3) of the Income-tax Act, 1961; in short “the Act”. We have heard both the parties. Case file perused.

:- 2 -: Inventaa Chemicals Ltd., Hyd.

The revenue’s sole grievance in the instant appeal challenges correctness of the CIT(A) action treating assessee’s income of Rs. 10,74,11,403/- from mushroom farming/production as agricultural entitled for exemption u/s 10(1) of the IT Act. The Assessing Officer’s assessment order had treated as business income. 2.1 We notice, during the course of hearing that the instant sole issue involved herein is no more res-integra. This tribunal’s Special Bench’s decision DCIT Vs. Inventaa Chemicals Ltd., (assessee’s own case for AYs 2008-09 to 2012-13) (2018) 172 ITD 1 (Hyd.) (SB), has already declined the Revenue’s very argument that the income derived from mushroom production is business income. We thus adopt the judicial consistency to uphold the CIT(A)’s order treating the income derived by the assessee from mushroom cultivation as agricultural income entitled for section 10(1) exemption.

:- 3 -: Inventaa Chemicals Ltd., Hyd.

This Revenue’s appeal is dismissed. Pronounced in the open court on 25th February, 2021.

DY. COMMISSIONER OF INCOME TAX , CIRCLE-2(1), HYDERABAD vs. INVENTAA CHEMICALS LIMITED , HYDERABAD