A. K. T. K. M. VISHNUDATTA ANDHARJANAM REPRESENTEDBY. D vs COMMISSIONER OF AGRICULTURAL INCOME TAX,TRIVANDRUM

The Supreme Court held that the sale receipts from teak trees, which were cut and removed from the land for planting rubber, are capital in nature and not subject to agricultural income-tax under the Kerala Agricultural Income-tax Act, 1950. The Court clarified that since the trees were completely removed with no possibility of regeneration, the income derived from their sale does not constitute a revenue receipt. The appeal was allowed, overturning the High Court's decision which had found against the appellant.