TMI Blog2015 (2) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... ential. Therefore, all the three activities, referred supra, are integral part of the business of warehousing and hence, they would squarely fall within the ambit of Section 10(29) of the Act and are eligible for grant of exemption. Tribunal without understanding the nature of the warehousing business, on an erroneous interpretation of the decision of the Supreme Court in Orissa State Warehousing Corporation / Rajasthan State Warehousing Corporation v. CIT [1999 (4) TMI 3 - SUPREME Court] has come to the conclusion that the above said three activities are not in relation to warehousing business. - Decided in favour of the assessee - T.C.(A).No.10 of 2008 - - - Dated:- 16-2-2015 - The Hon'ble Mr.Justice R.Sudhakar And The Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing charges, supervision charges, weigh bridge charges and other receipts. The assessee claimed the above income as exempt under Section 10(29) of the Act. The Assessing Officer held that only the amount received under the head storage charges is entitled to exemption under Section 10(29) of the Act and disallowed the other receipts like supervision charges, fumigation charges, weigh bridge receipts, etc. 2.2. The assessee appealed to the Commissioner of Income Tax (Appeals), who partly allowed the appeal and granted exemption in respect of the supervision charges, weigh bridge receipts and fumigation charges totalling ₹ 46,91,920/-. However, the Commissioner of Income Tax (Appeals) disallowed some of the claims made by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out of godowns or warehouses is for any other purpose, the question of exemption would not arise. Section 10(29) is categorical in its language and this exemption is applicable only in the circumstances as envisaged under the section. The word 'any income' as appearing in the body of the statute is restrictive in its application by reason of the user of the expression 'derived from'. Sections 10(20A), 10(21), 10(22B), and section 10(27) show that wherever as a matter of fact the Legislature wanted an unrestrictive exemption the same has used 'any income' without any restriction so as to make it explicit that the entire income of the assessee would be exempt. Having due regard to the language used, the question of ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the CIT (Appeals) on these issues and the appeal of the revenue is allowed.' 4. Respectfully following the above decision of the Tribunal in assessee's own case, the appeal of the revenue is allowed. 2.4. Impugning the said order, the assessee has preferred this appeal on the questions of law, referred supra. 3. We have heard Dr.Anita Sumanth, learned counsel appearing for the assessee and Mr.M.Swaminathan, learned Standing Counsel appearing for the Revenue and perused the orders passed by the Tribunal and the authorities below. 4. The main plank of the argument of the learned counsel for the assessee is that supervision charges, fumigation charges and weigh bridge receipts are all incidental activities connect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also essential. Therefore, all the three activities, referred supra, are integral part of the business of warehousing and hence, they would squarely fall within the ambit of Section 10(29) of the Act and are eligible for grant of exemption. 7. In our considered opinion, the Tribunal without understanding the nature of the warehousing business, on an erroneous interpretation of the decision of the Supreme Court in Orissa State Warehousing Corporation / Rajasthan State Warehousing Corporation v. CIT [1999] 237 ITR 589 (SC) has come to the conclusion that the above said three activities are not in relation to warehousing business. In the impugned order, the Tribunal has merely followed its earlier decision in the assessee's own case for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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