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Agriculture income or not
The farmer is extracting oil from boiler fixed at agricultural land by boiling Lemon Grass ( medicinal plant).The extracted oil is selling to the cosmotic. Whether this activity is agricultural income or not?Explain the tax implications on this activity.
Replies (7)
any things attached and growing from the land and on which manual labour is spent is termed as agricultural income as per SC ruling.
since you are lemon grass that is attached to the land and spending manual labour on it the income earned wud come under agricultural income
since you are lemon grass that is attached to the land and spending manual labour on it the income earned wud come under agricultural income
Thanks for your kind reply. Can you provide the details of above SC ruling for better understanding.
refer the case CIT v/s Raja Benoy Kumar Sahas Roy (1957) 32 ITR 466
If i buy Lemon grass from the market and put Boiler in the agricultural Land of other and extract oil to sale to the Cosmetic does it Agricultural Income?
it will not constitute as agricultural income as lemon grass is not grown in one's own agricultural land and no manual labour is spent and basic operations related to agriculture are not petfomed
I had asked the above question because Mr. Vinay Kumar has not mentioned in his question that the farmer is extracting oil from the Lemon grass grown in his farm.
| Originally posted by : Vinay kumar | ||
 |
The farmer is extracting oil from boiler fixed at agricultural land by boiling Lemon Grass ( medicinal plant).The extracted oil is selling to the cosmotic. Whether this activity is agricultural income or not?Explain the tax implications on this activity. |  |
The lemon grass is grown in theagricultural lands
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