Receipts from sale of trunks of trees, without cutting from its roots will be treated as Income
If a person sells merely leaves or fruits of the trees or even branches of the trees, it would be difficult (subject to the special exemption under section 4(3) (viii) of the Indian Income-tax Act, 1922) to hold that the realisation is not of the nature of income. Where the trunks are cut so that the stumps remain intact and capable of regeneration, receipts from the 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 realize a part of his capital. It need not be considered 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 realization is in the nature of capital. Do you think…