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TMI Blog1984 (1) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961, in respect of the income derived from the letting out of godowns or warehouses for storage, processing or facilitating the marketing of commodities ? " At the very start of the case, it was brought to our notice that the Board of Direct Taxes had granted exemption to the Central Warehousing Corporation with respect to these types of income but as these are directions which have to be followed by the income-tax authorities and there is a reference of the above question to this court, we have preferred to answer the question even though it may prove to be of academic interest only. At the very start of the discussion, it is necessary to quote s. 10(29) of the Act which is in the following terms: " 10. In computing the total inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Central Warehousing Corporation is that it can subscribe to the share capital of a State Warehousing Corporation. Therefore, essentially, a State Warehousing Corporation is almost identical with the Central Warehousing Corporation which is set up under s. 3 of the aforementioned Act. In the judgments which are U.P. State Warehousing Corporation v. ITO [1974] 94 ITR 129 (All); CIT v. Haryana Warehousing Corporation [1978] 112 ITR 374 (P H); Addl. CIT v. Karnataka State Warehousing Corporation [1980] 125 ITR 136 (Kar) and CIT v. Gujarat State Warehousing Corporation [1980] 124 ITR 282 (Guj), the Allahabad, the Punjab and Haryana, the Karnataka and the Gujarat High Courts have held in respect of State Warehousing Corporations that ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ] 124 ITR 147 (Cal), the other decision, the court did reach the conclusion that the assessee was not an " authority " within the meaning of s. 10(29) of the Income-tax Act, 1961. This decision was based on the conclusion that a joint stock company incorporated primarily for carrying on ordinary business or commercial activity under the Companies Act was not an " authority " within the meaning of s. 10(29) of the Act. This authority is also distinguishable as we are at present dealing with particular authority constituted by a Central Act for carrying on the functions specified in the Act. This is a statutory Corporation with statutory functions and we agree with the four judgments cited above to the effect that this is an " authority ". In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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