M/S. S.M. Agro Planters And vs Principal Chief Commissioner Of on 11 September, 2024
5. On query from Court he draws attention to order dated 23rd
March, 2021 made by the PCIT and points out, the authority in
referring to decision of the Kerala High Court in CIT vs. State
Page 2 of 4
Farming Corporation Ltd., reported in (2011) 199 Taxman 371
(Ker) (High Court) said that as per it, latex rubber generated in
course of extraction of rubber latex from trees cannot be brought to
income by applying rule 7A in Income Tax Rules, 1962. The
authority thereafter erred in saying income from scrap generated in
industrial activity of processing latex into products referred in rule
7A(1) has to be brought to income tax under rule 7.