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2008 (10) TMI 342 - HC - Income TaxExemption - The assessee was a warehousing corporation and claimed exemption under section 10(29) of the Act in respect of income received from procurement of wheat and paddy as agent of the Food Corporation of India. The claim was allowed on the ground that exemption under section 10(29) was confined to income derived from letting of gowdowns from warehousing or storage etc. The Tribunal held based on an appeal filed by assessee for the assessment year 2000-01that the rent received by the assessee on account of providing storage facilities was part of its business income and had to be computed under the hed "Profits and gains of business" and not under "Income from house property". Held that - (i) the income derived from procurement of wheat and paddy as agent of Food Corporation of India was not exempt u/s 10(290 of the Act. (ii) that it was the case of the assessee itself that providing storage facility to Food Corporation of India was its main business and not merely incidental business. Thus, the income derived from storage facility would not be covered by the head "Income from house property". There was nothing to show that assessee had challenged the treatment of the income as "Income from business" in the previous year as noted by the Tribunal. The income of the assessee directly fell under the head "Business" and not under the head "Income from house property".
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