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TMI Blog2015 (2) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment's appeal concerning exemption under Section 10(29) of the Income Tax Act? (ii)Whether the Tribunal is right in law in not noting that the Supreme Court had referred the identical issue to a Larger Bench of the Supreme Court for its consideration on account of conflicting decisions of two benches of the Supreme Court? (iii)Whether the Tribunal is right in law in not holding that the appellant is engaged in warehousing activities as a result of which, all its incomes are directly derived from the same, thus being eligible for exemption under Section 10(29) of the Income Tax Act? (iv)Whether the Tribunal is right in law in holding that the incomes from supervision charges, fumigation activities and weigh bridge receipts are not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilar issue came up for hearing before this Tribunal, Chennai Bench in assessee's own case for the asst.years 2000-01 to 2002-03 in I.T.A.Nos.1037-1042/Mds/06 dated 27.07.07 wherein it the Tribunal held as follows: 'In the case of Orissa State Warehousing Corporation Ltd. and Rajasthan Ware Housing Corporation vs. CIT (237 ITR 589) it was held as under: 'On a plain reading of section 10(29) of the Income-tax Act, 1961, it appears that the pre-requisite element for the entitlement as regards the claim for exemption is the income which is derived from letting out of godowns or warehouses for storage, processing or facilitating marketing of commodities and not otherwise. The Legislature has been careful enough to introduce in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e event the letting of godowns or warehouses is for any other purpose or if income is derived from any other source, then and in that event such an income cannot possibly come within the ambit of section 10(29) of the Act and is thus not exempt from tax.' 5. After going through the facts of the case and in view of the judgment of the Supreme Court cited supra, we hold that item no.2 to 11 listed in para 4 above can not be eligible for exemption u/s. 10(29) of the I.T.Act. Only Item no.1 listed in para 4 viz. Warehousing storage rent is entitled to deduction u/s.10(29) of the Act. With regard to exemption of three items viz., supervision charges, fumigation charges and weight b ridge receipts, as per the judgment of the Supreme Court ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the marketing of commodities, any income derived from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities A bare reading of the said provision makes it clear that any income derived from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities would be eligible for such benefit of exemption. 6. In the case on hand, the receipts mainly disputed by the Revenue are supervision charges, fumigation charges and weigh bridge receipts. When once goods are stored in the warehouses, it is the duty of the warehousing authorities to ensure that no damage or loss is caused to the same. Therefore, the warehousing authorities maintain security f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation service charges, weighbridge receipts, income from sale of tender forms and interest collected on belated refund of advances were income derived from incidental activities relating to warehousing of produce for storage, processing or facilitating the marketing of commodities. Thus, with the income having direct nexus to the activities, the assessee would be entitled to exemption under section 10(29) of the Act." 9. For the foregoing reasons, the 4th question of law is answered in favour of the assessee and against the Revenue. In view of the finding rendered above, the questions of law (1) to (3) have become purely academic in this appeal. In the result, this appeal is allowed and the order passed by the Tribunal is set aside. No co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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