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TMI Blog2008 (10) TMI 371X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal under section 260A of the Income-tax Act, 1961, against the order dated February 9, 2007 passed by the Income-tax Appellate Tribunal, Chandigarh Bench "A" for the assessment year 2002-03 proposing the following substantial questions of law : "(i) Whether the income of Rs. 11,80,53,083 and Rs. 25,13,561 derived by the appellant from procurement of wheat and paddy as agent of Food Corporation of India/Government is exempt under sec-tion 10(29) of the Act along with rental income from warehouses, the business of the appellant being one integrated ? (ii) Whether if the answer to question No. 1 is in the negative, the common expenses incurred by the appellant can be apportioned notionally towards taxable and non-taxable income ? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gards question No. (iii), the finding recorded by the Tribunal is as under : "The next issue raised is that the authorities below erred in holding that providing of storage facility to FCI is only incidental and part of business receipts and that the whole receipt from FCI is composite trading receipt, therefore, cannot be split up under various heads and further erred in holding that the assessee is storing its own goods and thus cannot let out the premises to itself in respect of providing of storage facilities to FCI. The same submissions were reiterated by the representative of the authority. On a perusal of record and after hearing the rival submissions, it is seen that this issue has already been adjudicated upon in I. T. A. No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court in East India Housing and Land Development Trust Ltd. v. CIT [1961] 42 ITR 49, the hon'ble High Court upheld the claim of the assessee. In East India Housing and Land Development Trust Ltd. [1961] 42 ITR 49, it was not regular business of the assessee to let out the ware-houses. The business of the assessee was to promote and develop markets and in that context, income of the assessee from rent was held to be rental income and not income from business. The said judgment could not have any application to the case of an assessee whose main business is of letting out warehouses for storage, etc., as in the present case. 9. The hon'ble Supreme Court applied the test whether income was directly covered by one head. It was held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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