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TMI Blog1971 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of coal to the nominees of the, evelopment Commissioner was not exempt under section 14(3)(i)(d) of the Act ? " The assessee is a federation of co-operative societies in the State of U. P. The assessment year is 1960-61 and the corresponding previous year is the year ending June 30, 1959. The assessee deals in various items like cloth, sugar, fertilizers, ghee, herbs, etc. One of the items dealt in by the assessee is coal. During the year the assessee earned an income of Rs. 5,63,590 in various transactions of coal, and the said income was subjected to tax by the Income-tax Officer. The assessee claimed exemption under section 14(3)(i)(d) of the Indian Income-tax Act, 1922, which runs as follows : " 14. (3) The tax shall not be pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the bricks manufactured by those societies were utilized by the agriculturists mainly for purposes of making wells, constructing store houses where seeds and agricultural produce could be stored and for other similar purposes. In this way coal was being used for meeting the requirement of agriculturists. It, was, therefore, an article intended for agriculture. The Tribunal looked into the objects clause in the bye-laws of the assessee-federation and came to the conclusion that its objects could be divided into two distinct classes : (1) Dealing in goods which a cultivator required for agriculture, viz., the goods which a cultivator needed as a producer, i.e., fertilizers, agricultural implements, etc. ; and (2) Dealing in goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under section 66(1) of the Indian Income-tax Act, 1922, for making the present reference and the Tribunal has referred the question mentioned above for the opinion of this court. Learned counsel for the assessee urged that the expression "other articles intended for agriculture " as used in section 14(3)(i)(d) should be interpreted liberally and in the manner urged on its behalf before the Appellate Tribunal. The assessee was supplying coal to its members for manufacturing bricks. These bricks in their own turn were to be used by the agriculturists in connection with the construction of irrigation channels, compost pits, seed stores and their dwelling houses. In these circumstances, it could be said that the coal which was supplied to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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