JUDGMENT

R. JAYASIMHA BABU, J.------
The question brought before us by the Revenue is, as to whether the income from sale of plants grown directly in the pots and the sale of seeds, can be treated as agricultural income within the meaning of section 2(1) of the Income Tax Act, 1961?The finding of the Tribunal is that the plants were not grown in the pots directly, but they are, after several operations carried out in the land, viz., cutting, gootying and inarching for the plants, transplanted in suitable containers, including pots and kept in the green house or in shade, and the trees were grown on the land directly.The assessee, during the relevant assessment yeas, viz., 1.97$-79 to 1982-83, was carrying on the business of a mursery under the name and style of "Soundaraya Nursery". It had extensive farm land of 10 acres in Vengaivasal village on the outskirts of Madras city as well as 41 grounds in Nandanam, Madras, and various types of fruit plants, flower plants, vegetable plants and seedli...