Law:

Section:

Section 10(29) of the Income-tax Act, 1961, read with section 39 of the Warehousing Corporation Act, 1962 - Exemptions - Income of marketing societies from letting of godowns - Assessment years 1973-74 and 1974-75 - Assessee, a statutory corporation established under Warehousing Corporation Act, 1962, for marketing of commodities, derived certain income by way of miscellaneous receipts and by way of commission on procurement of wheat for and on behalf of Food Corporation of India - Income in question was indeed income derived from letting of warehouses for storage, processing or facilitating marketing of commodities - Whether income in question received by assessee was exempt from tax under section 10(29) notwithstanding provisions of section 39 of Warehousing Corporation Act, 1962 - Held, yes FACTS The assessee, a statutory corporation established under the Warehousing Corporation Act, 1962, derived certain income from miscellaneous receipts and by way of commission on procurement of wheat for and on behalf of the Food Corporation of India. It claimed that the said income was exempt from tax under section 10(29) and the Tribunal allowed the assessee's claim. On reference: HELD A reading of clause (29) of section 10 shows that it provides for exemption of income derived from letting of godown or warehouses for storage, processing or facilitating the marketing of commodities if such income is derived by an authority constituted under any law for the time being in force for the marketing of commodities. It was apparent in the instant case that the assessee was an authority constituted under any law for the marketing of the commodities. Further, from a perusal of the Tribunal's order it appeared that though the receipt in question was inter alia termed as miscellaneous receipts on procurement of wheat for and on behalf of the Food Corporation of India, it was indeed income derived from letting of warehouse for storage, processing or facilitating the marketing of commodities. So far as the commission received by the assessee was concerned that commission was received both for procuring and storing wheat and other food articles on behalf of the Food Corporation of…

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