1984 (2) TMI 122

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..... 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, therefore, exemption under s. 80P(2)(e) .....

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..... P(2)(e) read as under: "80P. Deduction in respect of cooperative societies:(1) Where, in the case of an assessee being a Cooperative 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 specified in sub-section (2), in computing the total income of the assessee. .....

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..... modities'. If the intention was otherwise, the legislature would have used the word 'from' before 'processing'. The very fact that the word, 'for' is listed would indicate the letting of godowns or warehouses should be for storage, processing or facilitating the marketing of commodities and the income derived from letting of godowns or warehouses for those purposes alone is exempt under the above .....

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..... uses contemplated by the section is letting for any of the three purposes, namely, storage, processing or facilitating the marketing of commodities'. 4. The ratio laid down in the above case squarely applies to the instant case. In the instant case the assessee does not derive any income from letting of ;godown or warehouse for the purpose of storage, processing or marketing the commodities. Th .....

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..... 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 the letting of godowns or warehouses for the purpose of storage, processing or facilitating the marketing of commodities. Thus, in our view, the assessee is not entitled for the exemption under s. 80 P .....

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