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Issues involved:
The judgment addresses two issues under the Income-tax Act, 1961 for the assessment years 1973-74 and 1974-75. The first issue pertains to the exemption of the assessee's income from miscellaneous receipts under section 10(29) of the Act despite the provisions of section 39 of the Warehousing Corporations Act, 1962. The second issue concerns the exemption of the assessee's income from miscellaneous receipts and commission on wheat procurement for the Food Corporation of India under section 10(29) of the Income-tax Act, 1961, also in light of section 39 of the Warehousing Corporation Act, 1962. Assessment year 1973-74: The respondent-assessee, a statutory corporation under the Warehousing Corporations Act, 1962, claimed exemption for income from miscellaneous receipts under section 10(29) of the Income-tax Act, 1961. The court established that the respondent is an authority constituted under the law for marketing commodities based on previous decisions. The Tribunal's judgment revealed that the so-called miscellaneous receipts were actually income derived from letting warehousing for storage, processing, or facilitating the marketing of commodities. The Tribunal's order from earlier assessment years supported this interpretation, indicating that the receipts, though termed miscellaneous, were essentially akin to rent from warehousing activities. Similarly, the commission received by the assessee for wheat procurement for the Food Corporation of India was considered income derived from letting warehousing, as storage was the dominant activity. Consequently, both questions were answered in favor of the assessee, affirming the exemption under section 10(29) of the Act. Assessment year 1974-75: In the assessment year 1974-75, the respondent-assessee also claimed exemption under section 10(29) of the Income-tax Act, 1961 for income from miscellaneous receipts and commission on wheat procurement for the Food Corporation of India. The court reiterated that the income derived from these sources was essentially from letting warehousing for storage, processing, or facilitating the marketing of commodities. The Tribunal's findings indicated that the receipts labeled as miscellaneous and commission for wheat procurement were, in essence, income from warehousing activities. The commission received for wheat procurement was considered part of the storage activity, aligning with the requirements of section 10(29) of the Act. Therefore, both questions for the assessment year 1974-75 were also answered in favor of the assessee, confirming the exemption under section 10(29) of the Income-tax Act, 1961.
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