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Tax treatment

CA Raghavender (CHARTERED ACCOUNTANT) (305 Points)

31 December 2010

Can assessee take land on lease and conduct agricultural activities and climed Sec 10(1) Exemption is it correct?

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3 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 31 December 2010

bonafide lease agreement and communication / receipt from respective land reforms officer in favor of assessee is enough.

CA PARAS BAFNA (Practising CA ) (33423 Points)
Replied 31 December 2010

When an assessee claims Exemption U/s 10(1) , in Addition to the lease agreement and receipt from LRO , AO requires more details like, nature of the crop, amount of sales proceeds, relevant expenditure, and if sold in Food Grain Market (Mandi) Purchase Bills issued by the purchaser or commission agents etc.

Gaurav Agarwal (in job) (44 Points)
Replied 31 December 2010

yes, assessee can claim exemption u/s 10(1) but he has to arrange some more documents detailing the nature and sale proceeds of crop and expenses borne etc ...