1984 (2) TMI 119

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....s or warehouses for the purpose of storage, processing or facilitating the marketing of commodities and, therefore, exemption under section 80P(2)(e) is not available to the assessee in respect of its income from procurement, etc. Thus, he disallowed the claim. On appeal, the Commissioner (Appeals) upheld the same. Against the same the assessee has preferred this appeal. 2. The learned counsel for the assessee strongly urged that under section 80P(2)(e) even in respect of income received from processing or facilitating the marketing of commodities exemption is available. Hence, the assessee is entitled for the exemption claimed. The learned departmental representative strongly urged that only in respect of income from letting of godowns ....

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....wise, 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 derived from letting of godowns or warehouses for those purposes alone is exempt under the above provision. In coming to the above conclusion, we derive support from the decision of the Gujarat High Court in Surat Vankar Sahakari Sangh Ltd. v. CIT [1971] 79 ITR 722. In that case section 81(iv) of the Act, which is in identical terms with section 80P(2)(e), was considered. It was held therein that exemption is available only in respect of income derived from letting of godowns o....