9911796707
TMI Blog1971 (2) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... TH., R. S. PATHAK. JUDGMENT The judgment of the court was delivered by H. N. SETH J.- This is a reference under section 66(1) of the Indian Income-tax Act, 1922, made at the instance of the assessee, Messrs. U. P. Co-operative Federation, Lucknow. The Tribunal has referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the income derived by the assessee-federation from the 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 correspondi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expression " other articles intended for agriculture " as used in section 14(3)(i)(d), covered not only those articles which are directly connected with the tilling of soil, but also those articles which are either connected with the agriculturists or meant for their use. The assessee did not contend that "coal " was in any way directly connected with agriculture. It was urged that, in the instant case, the assessee was purchasing coal for brick kilns owned by various co-operative societies in U.P. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or could be utilized for agriculture. Unless purchase and supply of coal was directly attributable to agricultural purpose the assessee could not claim exemption under section 14(3)(i)(d) of the Act. In this connection reliance was placed on the case of Commissioner of Income-tax v. Raja Benoy Kumar Sahas Roy. In the result it upheld the order of the Income-tax Officer refusing to exempt the income earned by the assessee in connection with the purchase or supply of coal. The assessee then moved an application 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 expres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion with agricultural operations. Even assuming that coal was supplied by the assessee to its members for the purposes mentioned by the learned counsel it cannot be said that it was directly required in connection with any process of agriculture. Coal, therefore, is not an article which can be described as an article intended for agriculture. In this view of the matter the assessee is not entitled to the exemption under section 14(3)(i)(d) of the Act, as claimed by it. In the result we answer the question referred to us in the affirmative and against the assessee. The Commissioner of Income-tax will be entitled to the costs of this reference which we assess at Rs. 200. Counsel's fee is also assessed accordingly. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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