Excerpt: Now we are required to examine whether the view taken by the High Court in treating the firm as inanimate, incapable of personal cultivation of agricultural land is correct or otherwise. No elaboration is necessary to understand the legal composition of a firm and its personality which is a name given compendiously to a … Continue reading Whether the firm is agriculturist or non-agriculturist would depend upon the activities of its partnersThe firm may be inanimate but the partners comprising thereof are people in flesh and blood.
Gajanan Agro Farms,, Kolhapur vs Department Of Income Tax
under section 2(1A) of the Income-tax Act only agricultural income is defined and is required to be a source of income. It is not necessary that in order to come within the ambit of the Income-tax Act, the person has to be an agriculturist. It is sufficient if revenue is derived from agricultural activities conducted on a land situated in India which is used for agricultural purposes. Therefore, the CIT(A) was justified in holding that the firm can be an agriculturist which derives revenue from agricultural activity. 11. In this regard the CIT(A) rightly referred to the explanatory notes to the Finance Act 19