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Whether the Ld.CIT(A) is lawfully justified in law in holding that income from sale of Bonsai plants is agricultural income when no basic agricultural operations are carried out but only subsequent non-basic operations are carried out at the location of the plants where it was grown wild or spontaneously and little operation takes place inside the Farm for a very brief period before the product is saleable without any conjunction with basic operations ( as no basic operation need to be undertaken in this case) clearly violating the settled law of the and as enunciated by the Hon’ble Apex Court in CIT Vs. Raja Binoy Kuniar Sahas Roy [1957] 32 ITR 466.”The bonsai tree is nothing but a product on which primary and basic operation of agriculture is carried insofar as in order to make the biological change in it, it had to make eligible continue to live within a limited area. This clearly indicates that the trees/plant uprooted from soil and taken to farm in pot or polythene bags filled with soil for sale or transportation will not affect or change the nature of agricultural operations. Bonsai plants have been prepared on the land by the assessee and there are several agricultural operations, as explained in brief and observed in the order of the authorities below, that transplanting in a suitable container including pots and kept at the proper place i.e., green house or in the shed and after performing several operations, such as weeding, watering, manuring etc., they are made ready for sale as bonsai plant. It was not necessary to plough the land which is a must for implanting a seed. The very nature of the plant ultimately nurtured, is such that it has to be taken care of independently. Once the plants are able to live or out grow the basic agricultural operation carried out and they are ready for sale insofar as the bonsai is to live the life of the original tree which fetches a value

Reena Panda, Balasore vs Department Of Income Tax on 25 June, 2012 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK Before : Shri K.K.Gupta, AM, and Shri K.S.S.Prasad Rao, JM ITA No.084/CTK/2012 and C.O.No.18/CTK/2012 (Assessment Year 2008-09) (C.O. filed by the assessee) Income-tax Officer, Ward 1, Versus Smt. Reena Panda, Ichhapur, Balasore. Bhanaga, Balasore … Continue reading

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