R. JAYASIMHA BABU, J.

State has come up in revision against the decision of the Tamil Nadu Agrl. IT Tribunal, Chennai-104, by which the Tribunal held that the amount realised by the assessee from the sale of silver oak tree, silver oak dried, Thandi green, Thandi bore and Albizzia green trees did not constitute agricultural income but were capital receipts as these trees were shade trees on a coffee estate and constituted capital assets

2. The fact that the assessee owns a coffee estate and that these threes grown on the coffee estate were in fact shade trees, is not in dispute. It was not the case of the authorities at any time that these trees were used solely for the purpose of gaining revenue by way of sale of trees and that they are not necessary for the cultivation of coffee

3. That these trees were shade trees and are necessary for the effective cultivation of coffee is borne out by a letter sent by the senior liaison officer, Coffee Board, addressed to power or attorney Meganad Group Plantations, Sommanatham, PO Yercaud, which had been extracted in the order of the Tribunal. In that letter, it has been said that

"for coffee only deep-rooted permanent shade trees ar