Business or agri income

For the purpose of considering the income agricultural income the assesse himself has to perform some basic operations & also the secondary operations whihc are a continuation of the basic operations.  Baasic operations refer to to human expenditure on account of tilling the soild, sowing the seeds, irrigation etc... whihca re necessary to be performed for growing the crops.  Secondary operations shud be the continuance of the basic operations such as harvesting the crops putting them into the bags etc..

In your case you are directly purchsing the coconuts shell from some other person and manufacturing charcoal from it.  As the conditions explained above are not satisfied so the income shud be considered as business income & not agricultural income.