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

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ITA 152/HYD/2019Status: DisposedITAT Hyderabad25 February 2021AY 2013-143 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed its own Special Bench decision in the assessee's own case for earlier assessment years. This decision held that income from mushroom production is agricultural income and not business income.

What were the facts?

The Assessing Officer treated income from mushroom farming as business income. The assessee claimed it as agricultural income eligible for exemption under Section 10(1). The CIT(A) allowed the assessee's claim.

What were the issues?

Whether income derived from mushroom farming/production is agricultural income eligible for exemption under Section 10(1) of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 10(1)

AI-generated summary — verify with the full judgment below

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.

2.

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.

3.

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

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