Shri Madhu Velayudhan Vs. Income Tax Officer, Ward-11(1), Hyderabad

Parties Involved

Facts Summary

The assessee, Shri Madhu Velayudhan, is engaged in the production and sale of Banana Saplings. For the assessment years 2015-16 and 2016-17, the assessee filed returns declaring total income and agricultural income. The case was selected for limited scrutiny under CASS, and the Assessing Officer accepted the returned income. However, the Commissioner of Income Tax (CIT) set aside the order of the Assessing Officer, directing a re-assessment treating the agricultural income as business income. The Assessing Officer re-assessed the income, treating the agricultural income as business income. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), who dismissed the appeal. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the income derived from the production and sale of Banana Saplings should be treated as agricultural income or business income.

Judgment Outcome

Decided in favour of Partly Assessee.

Precedents Relied Upon

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