Tribunal held that ,Mushroom is not a ‘vegetable’, ‘plant’, ‘fruit’ or ‘animal’ but is a ‘fungus’. Anything which is produced by performing basic operations on the soil is an “agricultural product” and the income therefrom is “agricultural income”. The nature of the product and the fact that it is not a ‘plant’, ‘flower’, ‘vegetable’ or ‘fruit’ is irrelevant. The only relevant aspect is whether the production is by performing some basic operations on the soil . Accordingly the income from production and sale of Mushrooms can be termed as ‘agricultural’ income . (ITA Nos. 1015 to 1018/Hyd/2015 C.O. Nos. 53 to 56/Hyd/2015, dt. 09.07.2018)( AY. 2008-09 to 2012-13)
DCIT v. Inventaa Industries Private Limited ( 2018) 168 DTR 81 / 178 ITD 1/ 194 TTJ 657/ 65 ITR 625 ( Hyd)(Trib)(SB), www.itatonline.org
S. 2(1A): Agricultural income-Mushroom is not a ‘vegetable’, ‘plant’, ‘fruit’ or ‘animal’ but is a ‘fungus’. Anything which is produced by performing basic operations on the soil is an “agricultural product” and the income therefrom is “agricultural income”. The nature of the product and the fact that it is not a ‘plant’, ‘flower’, ‘vegetable’ or ‘fruit’ is irrelevant. The only relevant aspect is whether the production is by performing some basic operations on the soil. Accordingly the income from production and sale of Mushrooms can be termed as ‘agricultural’ income . [ S.10(1)]