Sc stay non-agricultural Income; Grants interim stay Advts mhc M. Velmurugan, S. Saravanakumaran and Girija Velmurugan are appearing for the Assessee.
Direct Tax
SC issues notice in British-Agro’s plea challenging Mushroom cultivation a non-agricultural Income; Grants interim stay
SC admits M/s. British Agro Products (India) Pvt. Ltd.’s (Assessee) Special Leave Petition challenging the Madras High Court’s judgment wherein it was held that income derived from cultivation and sale of white button mushrooms under controlled conditions is not “agricultural income” under Section 2(1A) and thus not exempt under Section 10(1); Assessee had argued before the SC that the judgment will have widespread ramifications on the agricultural sector if followed by the Revenue for adjudicating similar disputes all over the country; Assessee further urged that the Special Bench ruling in Inventaa Industries was well reasoned and the HC had failed to properly consider the reasoning adopted in the special bench ruling; Hence, Assessee urged that, in the interest of the agricultural sector, the judgment may be stayed absolutely granting wholesome relief to all stakeholders until SC decides the validity of the HC judgment; SC issues notice to Revenue returnable in four weeks; SC refuses to stay the judgment ‘absolute’ but directs that no recovery to be made from the Assessee in the meantime.
The matter is before the Division Bench of the Supreme Court comprising Justice Manoj Misra and Justice Ujjal Bhuyan. Sr. Adv. Arvind Datar and Sr. Adv. Ajay Vohra, along with Advocates Anand Varma, Polavarapu Sai Charan, M. Velmurugan,
S. Saravanakumaran and Girija Velmurugan are appearing for the Assessee.
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