Commissioner of Income Tax vs District Co-operative Federation Ltd.

The Income Tax Appellate Tribunal, Delhi, has referred following question of law u/s 256(1) of the Income Tax Act, 1961 (hereinafter referred to as ''the Act'') for opinion to this court :

"Whether, on the facts and in the circumstances of the case, the ITAT was correct in holding that the income of the assessee from cold storage was exempt under the provisions of section 80P(2)(e) of the Income Tax Act, 1961 ?"

Briefly stated the facts involved in the present case are as under:

The present reference relates to the assessment year 1984-85. The respondent-assessee is a Co-operative Society. It claimed exemption u/s 80P(2)(e) of the Act in respect of income of two cold storages situate at Bulandshahar and Jahangirabad. The assessing officer did not accept the claim of the respondent-assessee on the ground that in respect of the assessment year 1983-84 the matter is pending before this Hon''ble court in reference. The Appellate Assistant Commissioner, however, has allowed the claim of the respondent-assessee which has been confirmed by the Tribunal.

We have heard Sri A.N. Mahajan, learned standing counsel for the revenue and Shri M. Manglik has filed appearance on behalf of the respondent-assessee.

We find that this court in the ITR No. 115 of 1985 - Commissioner of Income Tax Vs. District Co-operative Federation, has held that the income from letting out the cold storage run by a Co-operative Society so exempt u/s 80P(2)(e) of the Act, is itself an warehouse.

Respectfully following the aforesaid decision, we answer the question referred to us in affirmative, i.e., in favour of assessee and against the revenue. However, there shall be no order as to costs.