U.P. (Rohelkhand Tarai) Ganna Beej Evam Vikas Nigam vs Commissioner of Income Tax

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

"1. Whether the Tribunal was right in holding that u/s 10(29) only income derived from the letting of godowns or warehouses for storage, commodities was exempt.

Whether the Tribunal was right in upholding the order of the Commissioner (Appeals) that 38 per cent of the assessee''s income pertained to the marketing of sugarcane seeds."

We have heard Sri Vikram Gulati, learned counsel for the appellant and Sri A.N. Mahajan, learned Standing counsel for the revenue.

The reference relates to the assessment year 1982-83. It is agreed between the learned counsel for the parties that the questions have to be answered in favour of the assessee in view of decisions given by this court in ITR No. 86 of 1985, CIT v. U.P. Rohelkh Tarai Ganna Beej Evam Vikas Nigam dated 3-9-2004, ITR No. 178 of 1984, decided on 10-2-2004 and ITR No. 197 of 1985 decided on 30-9-2004, which are inter parties.

In view of the agreement between the learned counsel for the parties, we answer both the questions in negative i.e., in favour of the assessee and against the revenue.