During the previous year relevant to the assessment year 1961 62, the assessee received a sum of Rs.
The High Court endorsed the view taken by the.
The Income tax Officer denied the exemption, and on appeal, the Appellate Assistant Commissioner of Income tax companyfirmed the denial.
31,316 received by the assessed society from the Madras Government under an agreement for stocking and distribution of ammonium sulphate was exempt under Section 14 3 iv of the Indian Income tax Act, 1922 ?.
In the result, the Appellate Tribunal allowed the appeal and granted the exemption claimed by the assessee.
31,316 on this account, the amount being described as companymission.
In the assessment proceedings for the assessment year 1961 62, the assessee claimed exemption from tax under Section 14 3 iv of the Indian Income tax Act, 1922, in respect of the said sum of Rs.
Income tax Appellate Tribunal and answered the reference against the Revenue and in favour of the assessee.
At the instance of the Revenue, the Income tax Appellate Tribunal referred the following questions to the High Court of Madras Whether, on the facts and in the circumstances of the case, the sum of Rs.
Whether, on the companystruction of the agreement between the assessee and the State Government, the Appellate Tribunals finding that the receipts were mostly for letting out the godowns and that the servicing was an insignificant portion of the whole amount is reasonable and companysistent with the material on record ?
Under the agreement, the assessee was required further to take all necessary steps to enable such stocking and storage of the fertiliser, including taking delivery of the stock at the rail head and transporting it to the godowns.
The assessee entered into an agreement with the State Government during the previous year ending June 30, 1960, relevant to the assessment year 1961 62, whereby the assessee agreed to hold a stock of ammonium sulphate belonging to, and on behalf of, the State Government, and to store it in godowns which, admittedly, belonged to the assessee.
The respondent assessee is a companyoperative society registered under the Madras Co operative Societies Act.
31,316.
But, on second appeal by the assessee, the Income tax Appellate Tribunal held that the various terms of the agreement with the State Government companystituted companysideration for letting the godowns, and that any servicing done in that companynection represented an insignificant part of the entire transaction.
S. Pathak, C.J. This appeal by certificate granted by the High.
Court of Madras is directed against the judgment of the High Court disposing of a reference in favour of the assessee and against the Revenue.
