IN THE HIGH COURT OF DELHI AT NEW DELHI 
 71 
         ITA 1223/2010  
 . 
 PIONEER OVERSEAS CORPORATION                  ..... Appellant 
 Through Ms.Shashi Kapila, Advocate 
 versus 
 ADDITIONAL DIRECTOR OF INCOME TAX       ..... Respondent 
 Through none 
 CORAM: 
 HON'BLE THE CHIEF JUSTICE 
 HON'BLE MR. JUSTICE MANMOHAN 
 . 
 O R D E R 
                        17.08.2010 
 . 
 CM No.14685/2010 (exemption) 
 Allowed, subject to all just exceptions. 
 ITA No.1223/2010 
 The present appeal preferred under Section 260A of the Income Tax Act, 
 1961 is admitted on the following substantial questions of law: 
 1.       Whether the tribunal erred in law in holding that appellant?s income 
 derived from cultivation and sale of parent seeds does not entirely fall within 
 the definition of ?agricultural income? under Section 2(1A) of the Income Tax 
 Act, 1961, even though there is no finding by the tribunal that no basic 
 operations on land were carried out by the appellant? 
 . 
 2.       Whether the tribunal wrongly applied sub-clause (ii) and (iii) of 
 Section 2(1A) holding that the research conducted several years prior to the 
 commencement of basic operations like tilling of land and sowing of breeder seed 
 this year constitutes ?process? which was applied to the produce of parent seed 
 harvested in the relevant previous year? 
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 3.       Whether the tribunal erred in law in holding that Research and 
 Development of breeder / parent seed and its subsequent use as input for 
 cultivation of parent seed constitutes ?one single composite activity? and 
 therefore attributing ninety percent of parent seed to research and hence 
 treating it as business income under Rule 7 of the Income Tax Rules, 1962 read 
 with sub-clauses (ii) and (iii) of Section 2(1A)(b) of the Act? 
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 Issue notice. 
 Let this appeal be linked with ITA Nos.1210-1213/2010. 
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 CHIEF JUSTICE 
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 MANMOHAN, J 
 AUGUST 17, 2010 
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