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A. K. T. K. M. Vishnudatta Andharjanam ... vs Commissioner Of Agricultural Income ... on 5 May, 1970 cites

V. Venugopala Varma Rajah vs Commissioner Of Income-Tax, Kerala on 24 September, 1969

In V. Venugopala Verma Rajah v. Commissioner of Income tax Kerala(1) the question before this Court was whether trees which had not been removed with the roots and the stumps of which had been allowed to remain in the land was in the nature of income. This is what was observed in that case "Where the trunks are cut so that the stumps remain intact and capable of' regeneration, receipts from sale of the trunks would be in the nature of income. It is true that the tree is a part of the land. But by selling a part of the trunk, the assessee does not necessarily realise a part of his capital. We need not consider whether in case there is a sale of the trees with the roots so that there is no possibility of regeneration, it may be said that the realisation is in the nature of capital. That question does not arise in the present case."
Supreme Court of India Cites 10 - Cited by 2 - J C Shah - Full Document

Commissioner Of Income-Tax, Bombay ... vs N.T. Patwardhan on 26 April, 1960

178. 538 ,particular receipt is income is not satisfied in the facts and circumstances of the present case. According to that test income con-notes a periodical monetary return coming in with some sort of regularity or expected regularity from definite sources. The source is not necessarily one which is expected to be continuously productive but it must be one whose object is the production of a definite return excluding anything in the nature of a mere windfall. Once the teak trees were removed together with their roots and there was no prospect of regeneration or of any production of a return therefrom it could well be said that the source ceased to be one -which could produce any income. The Bombay High Court in Commissioner of Income-tax, Bombay South v. V. T. Patwardhan(1) said that from the point of view of a person engaging himself in the business of sale of trees the capital structure would be not only the land on which the trees stood but also the roots ,of the trees from which the wood yielded income. If the trees 'were sold off with the roots the capital structure would be affected. The High Court in the judgment under appeal was particularly impressed with the profit motive of the assessee in, planting teak trees although that, was done several years ago. But it was overlooked that profit motive is not decisive of the question whether a particular receipt is capital or income, An accretion to capita does not become taxable income merely because an asset is acquired in 'the hope that it may be sold at a profit. It must also be remembered that trees so long as they are uncut form a part of the land. If they are cut with roots once and for all a part of the assets is disposed of. The sale proceeds on account of their disposal cannot constitute revenue because by removing the roots the source ,from which fresh growth of trees can take place is also removed. The sale of such trees thus affects capital structure and cannot give rise to a revenue receipt.
Bombay High Court Cites 3 - Cited by 16 - Full Document
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