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Section 80P of the Income-tax Act, 1961 - Deductions - Income of co-operative societies - Assessment year 1979-80 - Whether a cold storage can be said to be a warehouse or godown where goods are stored and, therefore, income from it would be exempt under section 80P(2)(e) - Held, yes FACTS The assessee-company, a co-operative society filed its revised return claiming deduction under section 80P(2)(e) in respect of the cold storage owned by it. The ITO did not allow the exemption. On appeal, the Commissioner (Appeals) directed that the deduction be allowed under section 80P(2)(e) in respect of the income from the running of the cold storage which was upheld by the Tribunal. On reference : HELD Both the terms 'godowns' and 'warehouses' are synonymous and interchangeable. The common parlance meaning which can be attributed to godowns or warehouses is that they must be used for the purpose of storage of goods even for a temporary period. [Para 16] From the dictionary meaning as also from the decisions of the High Court in CIT v. Radha Nagar Cold Storage (P.) Ltd. [1980] 126 ITR 66/ 4 Taxman 351 (Cal.) and the Apex Court in Delhi Cold Storage (P.) Ltd. v. CIT [1991] 191 ITR 656/ 59 Taxman 144 , it is established that in a cold storage, vegetables, fruits and several other articles are stored. Giving a liberal interpretation to the provisions of section 80P(2)(e), it can be treated as a warehouse or godown where fixed temperature is maintained. Thus, giving a liberal interpretation to the words 'godowns' and 'warehouses' mentioned in section 80P(2)(e), a cold storage can be said to be a warehouse or godown where goods are stored and, thus, it falls under the aforesaid section. In that view of the matter, the income from cold storage would be exempt. [Para 22] CASES REFERRED TO Delhi Cold Storage (P.) Ltd. v. CIT [1991] 191 ITR 656/ 59 Taxman 144 (SC) [Para 4], Addl. CIT v. Ryots Agrl. Produce Co-operative Marketing Society Ltd. [1978] 115 ITR 709 (Kar.) [Para 5], CIT v. Radha Nagar Cold Storage (P.) Ltd. [1980] 126 ITR 66/ 4 Taxman 351 (Cal.) [Para 5], CIT v. Ahmedabad Maskati Cloth Dealers Co-operative Warehouses Society Ltd. [1986] 162 ITR 142(Guj.) [Para 5], CIT…

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