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TMI Blog1984 (2) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of its income of Rs. 1,20,206. This represents commission received from the Karnataka Food and Civil Supplies Corporation for procurement of paddy and rice and reimbursement of transport charges. The ITO held that no part of its income represents earning from letting of godowns or warehouses for the purpose of storage, processing or facilitating the marketing of commodities and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have considered the rival submissions. Section 80P(1) and 80P(2)(e) read as under : " 80P. Deduction in respect of income of co-operative societies.---(1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub-section (2), there shall be deducted, in accordance with and subject to the provisions of this section, the sums s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Thus, the word 'for' applies for 'processing' as well as 'facilitating the marketing of commodities'. If the intention was otherwise, the Legislature would have used the word 'from' before 'processing'. The very fact that the word 'for' is used would indicate that the letting of godowns or warehouses should be for storage, processing or facilitating the marketing of commodities and the income de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omposite clause governed by the preposition 'for' signifying that the letting of godowns or warehouses contemplated by the section is letting for any of the three purposes, namely, storage, processing or facilitating the marketing of commodities. . . ." The ratio laid down in the above case squarely applies to the instant case. 4. In the instant case the assessee does not derive any income fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te marketing of the same. The Hon'ble High Court held that on the facts found by the Tribunal there can be no doubt that the claim for exemption made by the assessee and upheld by the Tribunal is justified in law. The facts in the instant case are different as no income is earned by the assessee from letting of godowns or warehouses for the purpose of storage, processing or facilitating the market ..... X X X X Extracts X X X X X X X X Extracts X X X X
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