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TMI Blog1986 (4) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... nstituted under any law for the marketing of commodities; and 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the income of the corporation from letting of godowns and/or warehousing was exempt from tax under section 10(29) of the Income-tax Act, 1961. " The Income-tax Officer was of the view that the assessee is not entitled to exemption under section 10(29) of the Income-tax Act, 1961, and, therefore, he added the income from letting of godowns and/or warehouses, in respect of the assessment years 1969-70 and 1970-71. The assessee went in appeal before the Appellate Assistant Commissioner and the Appellate Assistant Commissioner allowed the appeals and held that the assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingal Brothers P. Ltd. v. CIT [1980] 124 ITR 147. The main controversy arising in these matters centres round the expression " authority " under section 10(29). What is required for the applicability of the provisions of section 10(29) is that it should be a body constituted under some law and it should come into existence for the marketing of commodities. If the body is constituted under the law with such an object, then it would be an authority constituted under the law to which section 10(29) would apply. The expression authority constituted for the purpose of marketing of commodities has been considered by the High Courts referred to above other than Calcutta and we need not make further probe into the matter and deal with the questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticular context. To us, it appears that when any body is constituted under any law with the object of marketing of commodities, then that body would be an authority and such an authority will be covered by section 10(29). That body being a statutory corporation exercising the statutory powers and functions would be an authority entitled to claim exemption on income from letting of godowns and/or warehouses. We accordingly answer the two questions in favour of the assessee and against the Revenue and hold that the Tribunal was justified in holding that the assessee corporation is an authority constituted under the Warehousing Corporations Act for the marketing of commodities and its income from letting out godowns is exempt from tax under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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