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The headline news income tax mushroom is a kind of agricultural product which does not levy taxes on 2018-07-25 15:40:09

The headline news income tax "mushroom" is a kind of "agricultural product" which does not levy taxes on its production.

The Hyderabad Income Tax Appeals Court (ITAT) Dy IT company M.S.S.NOTAA industrial private Co., Ltd. believes that, according to the 1961 income tax act, the production and sales of mushrooms can be called "agricultural income". Earlier, the Department believed that mushrooms were grown in the "growth room", under controlled conditions, on shelves on shelves, and composting (manure) was made of straw, horse manure, chicken manure, gypsum and urea, which was not land. Therefore, the activity is not an agricultural activity. AssiSee claims that agricultural products are produced by basic operations on the soil, even if the product is not "plant" or "flower" or "vegetable" or "fruit". It should be emphasized that the nature of the product is irrelevant as long as some basic operations are carried out on the soil.  The court allowed the agency to argue that mushrooms, such as vegetables and other crops or plants, grow on soil / land and stick to the soil until harvest. They only draw nutrients from the soil. "Edible fungus" is not caused by any two agricultural production. "After taking into account the facts and circumstances, the bench concluded that mushrooms are agricultural products from land. "Mushroom production cannot be said to be distantly linked to land. This product comes from the land and is attached to it during its growth, then like a plant or crop. L.D.AO is wrong with the comparison of cocoon sales with the judgment of K.LaxShansAs& Co. relative to CIT (1981) 128 ITR 283 (Kar). In fact, silkworms feed on mulberry leaves instead of products from land. "Mulberry leaves are the products of land, and are the fodder for nibbling." The bench says.


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