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AGRICULTURE INCOMES

Others 1164 views 3 replies
Can we consider agriculture income earned from Hydroponic Farming in commercial property.
Replies (3)

Its controversial issue. Different case laws on the issue have contradictory opinions. 

Some measure of cultivation is necessary for land to have been used for agricultural purposes. The ambit of agriculture covers all land produce like grain, fruits, tea, coffee, spices, commercial crops, plantations, groves, and grasslands. 

Need to check the the activities before any conclusion. 

 

What the disclosure till dare.

Conditions for considering an income as agricultural income are:-

1. There must be a land situated in India

2. Income must be derived from such land by agriculture

Explanation 3 to s.2(1A) provides that "For the purpose of this clause, any income derived from saplings or seedings grown in a nursery shall be deemed to be agricultural income"

Per Explanation 3, hydroponic farming will be covered within ambit of section 2(1A).

It would be debatable whether for earning agricultural land, it is absolutely imperative that there must be an agricultural land as defined under state statutes.   While section s.2(14) uses term "Agricultural land" s.2(1A) does not advert to such term anywhere and it simply uses words like "Agriculture", "agricultural purpose".   


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