TaxTMI 
TaxTMI 
2011 (10) TMI 479
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....vices (iii) Income from Supervisory Charges (iv) Miscellaneous income (v) Aerial Spraying collections (vi) Coffee and soil fumigation collections 3. The Assessing Authority held that assessee is not entitled to exemption under Section 10(29) with regard to the above category of incomes and he framed an order of assessment. Aggrieved by the same the assessee preferred an appeal to the Commissioner of Income Tax (Appeals). The assessee contended that the fumigation, disinfestation and supervisory service charges collected by the assessee were directly connected with the storage of goods as well as facilitating marketing of commodities and therefore, he is entitled to the exemption from payment of tax. The Appellate Commissioner did not accept the case of the assessee, but it accepted the case of the assessee to the effect that whatever expenditure it incurred out of the income so derived should be given deduction and therefore, to that extent he remanded the matter to the Assessing Authority to work out the expenditure related to addition made in each assessment year. Aggrieved by the said order both the assessee as well as the revenue preferred....
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....entions, the substantial question of law that arise for our consideration is as under: "Whether the fumigation charges, disinfestation charges, supervisory charges collected by the Corporation from its customer to whom the warehouse is let out for the purpose of storage and then facilitate marketing would full within the mischief of Section 10(29) of the Act?" 8. Chapter 3 in which Section 10 finds a place deals with income which do not form part of total income. Section 10 in particular deals with income not included in total income. Section 10(29) reads as under: "In the case of an authority constituted under any law for the time being in force for the marketing of commodities, any income derived from the letting of godowns or warehouses, processing or facilitating the marketing of commodities." 9. Therefore, it is clear from the aforesaid provision which was deleted from the statute by Finance Act, 2002, which came into effect from 1-4-2003, that in computing total income of a previous year in the case of authority constituted in law for the time being in force for the marketing of commodities, any income derived from the letting of godowns or warehouses for storage,....
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....e Legislature has been careful enough to introduce in the section itself, a clarification by using the words 'any income derived therefrom', meaning thereby obviously for marketing of commodities by letting out of gowowns or warehouses for storage, processing or facilitating the same. If the letting out of godowns or warehouses is for any other purpose, question of exemption would not arise. 23. In our opinion, it would not be permissible to introduce words in the provisions of cl. (29). To do so will be to read in the aforesaid clause words which do not occur there. Moreover, all the activities of a body constituted for the marketing of commodities are such which ultimately may be found to facilitate the marketing of commodities. If income derived from every activity of an authority constituted for the marketing of commodities was meant to be exempted under clause (29), the said provision would have been enacted as follows: "any income derived by an authority constituted under any law for the time being in force for the marketing of commodities" Such a provision would be found in clauses (20A), (21) and (22) of section 10 of the Act. A perusal of these clauses would show ....
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....s expenditure for facilitating commodities to be marketed by fumigation, disinfestations or for supervision, that income is not included under Section 10(29). Therefore, this is a case of misreading of the judgment by the Tribunal. 13. In fact in the case of CIT v. Rajasthan State Warehousing Corpn. [1994] 75 Taxman 66 (Raj.) the Division Bench has squarely pointed out the meaning of the words 'facilitating marketing of commodities' at para 12 which is as under: "12. It is true that the words 'facilitating the marketing of commodities' is of wider scope which include number of activities, but the same has to be read along with 'any income derived from letting of godowns or warehouses for facilitating the marketing of commodities.' The income which is exempt under this clause must be derived from 'letting of gudowns,' for facilitating the marketing of committees. The words 'facilitating the marketing of commodities' cannot be considered independently and, therefore, the exemption which has been granted is for the income which has been derived from 'letting of the godwons,' the sources of income which has been exempted in this clause. The assessee may have different sources of ....