TaxTMI 
TaxTMI 
2015 (2) TMI 859
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....bunal is right in law in allowing the department's appeal concerning exemption under Section 10(29) of the Income Tax Act? (ii)Whether the Tribunal is right in law in not noting that the Supreme Court had referred the identical issue to a Larger Bench of the Supreme Court for its consideration on account of conflicting decisions of two benches of the Supreme Court? (iii)Whether the Tribunal is right in law in not holding that the appellant is engaged in warehousing activities as a result of which, all its incomes are directly derived from the same, thus being eligible for exemption under Section 10(29) of the Income Tax Act? (iv)Whether the Tribunal is right in law in holding that the incomes from supervision charges, fumigatio....
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.... both the parties and perused the materials on record. Similar issue came up for hearing before this Tribunal, Chennai Bench in assessee's own case for the asst.years 2000-01 to 2002-03 in I.T.A.Nos.1037-1042/Mds/06 dated 27.07.07 wherein it the Tribunal held as follows: 'In the case of Orissa State Warehousing Corporation Ltd. and Rajasthan Ware Housing Corporation vs. CIT (237 ITR 589) it was held as under: 'On a plain reading of section 10(29) of the Income-tax Act, 1961, it appears that the pre-requisite element for the entitlement as regards the claim for exemption is the income which is derived from letting out of godowns or warehouses for storage, processing or facilitating marketing of commodities and not otherwise....
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....tion in the event of there being any income therefrom. In the event the letting of godowns or warehouses is for any other purpose or if income is derived from any other source, then and in that event such an income cannot possibly come within the ambit of section 10(29) of the Act and is thus not exempt from tax.' 5. After going through the facts of the case and in view of the judgment of the Supreme Court cited supra, we hold that item no.2 to 11 listed in para 4 above can not be eligible for exemption u/s. 10(29) of the I.T.Act. Only Item no.1 listed in para 4 viz. Warehousing storage rent is entitled to deduction u/s.10(29) of the Act. With regard to exemption of three items viz., supervision charges, fumigation charges and weight....
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.... 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 for storage, processing or facilitating the marketing of commodities A bare reading of the said provision makes it clear that any income derived from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities would be eligible for such benefit of exemption. 6. In the case on hand, the receipts mainly disputed by the Revenue are supervision charges, fumigation charges and weigh bridge receipts. When once goods are stored in the warehouses, it is the duty of the warehousing authorities to ensure that no damage or loss....