2000 (11) TMI 89

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....ircumstances of the case, the Appellate Tribunal is right in law in holding that the income of the assessee from commission-cum-incidental charges for handling of chemical fertilizers as the sole agent of the Jammu and Kashmir State Government is exempt from the charge of tax under the provisions of section 80P(2)(e) of the Income-tax Act, 1961 ?" The assessee is a co-operative society. It was appointed by the Government of Jammu and Kashmir its sole agent for the import and distribution of chemical fertilizers allotted to it by the Central Government or purchased by it from the approved manufacturers. Under the terms of the agreement dated February 19, 1967, entered into between the assessee-society and the Government of Jammu and Kashm....

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....8 and 1968-69, has already been decided by this court. The said decision is reported in CIT v. J. & K Co-operative Supply and Mktg. Federation Ltd. [1993] 204 ITR 289. In that case, this court on perusal of the various terms and conditions of the agreement dated February 19, 1967, observed as follows : "In the cases before us, however, as will be seen from the various terms and conditions of the agreement executed on February 19, 1967, the main activity which the assessee was to perform was in respect of the import, carriage and distribution of the chemical fertilizers to various places in the State. Because the main activity of the assessee was not relatable to the storage of the fertilizers in the godowns, which activity could be const....

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....e income derived by it from storage of the fertilizers in its godowns. This court, therefore, left it open to the assessee to indicate before the concerned income-tax authorities the manner in which this exemption was to be claimed by it and the extent of the exemption in the light of the break-up of the figures for the relevant assessment years. The above decision of this court squarely applies to the present case. It may be pertinent to observe that under section 80P(2)(e) of the Act, the assessee, being a co-operative society, is entitled to deduction of the whole of the income derived by it from "the letting of godowns or warehouses or facilitating the marketing of the commodities". As is evident from the decision of this court cited....