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Income tax exemption sec 10

shubham (student) (238 Points)

24 January 2014

if a person has given agricultural land for shooting of a film. whether income will be exempted or not.

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Deepak Gupta (CA Student) (15922 Points)
Replied 24 January 2014

Originally posted by : shubham
	if a person has given agricultural land for shooting of a film. whether income will be exempted or not.

The income received from a filmmaker for allowing them to shoot a film in the agricultural land owned by the assessee is not in the nature of agricultural income because it was neither received by him against the sale of agricultural produce obtained nor for carrying out the normal agricultural operations on the land. The amount paid was only for the purpose of shooting of a film on such land.
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To claim exemption for agricultural income u/s 10(1), the conditions contained in section 2(1A) (a) to (c) have to be first complied with/fulfilled by the assessee.
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The Madras High Court in the case of B. Nagi Reddi v. CIT (2002) 258 ITR 719, following the judgment of Apex Court in the case of Raja Benoy Kumar Sahas Roy (1957) 32 ITR 466, has held, on identical facts, that the income derived for allowing a shooting of film in the agricultural land cannot be treated as agricultural income, as it has no nexus with the land, except that it was carried out on agricultural land.