THE DOOARS TEA CO., LTD. vs COMMISSIONER OF AGRICULTURAL,INCOME-TAX, WEST BENGAL

The Supreme Court held that under Clause (1) of Section 2(1)(b) of the Bengal Agricultural Income-tax Act, 1944, agricultural produce utilized by an assessee for its own business constitutes income, regardless of whether it has been sold or converted into money. The Court clarified that no sale is necessary for the agricultural produce to be considered income, thus upholding the assessment made by the Agricultural Income-tax Officer. The appeal was dismissed, affirming the decision of the Calcutta High Court.