PARTLY AGRICULTURAL AND PARTLY NON-AGRICULTURAL INCOME :-
The income whose some portion is agricultural while other portion is non-agricultural.
Example 1 :
Income received from growing tobacco is agricultural income. While manufacturing cigarette is non-agricultural.
Example 2 :
Income from growing sugarcane is agricultural income while manufacturing sugar is non-agricultural income.
Example 3 :
Income from growing leaves is agricultural while making it in tea is non-agricultural income.
In above examples growing of crops is an agricultural process because it fulfills the conditions of agricultural income.
While manufacturing process is chargeable to tax under the head of “income from business and profession.” So it is non-agricultural income.