M.C.JAIN, J. - (1.) THE Income -tax Appellate, Jaipur Bench, has made this reference on Reference Applications Nos. 85 and 86/JP/1974 -75, arising out of ITA Nos. 719 and 720/JP/1972 -73, in respect of the assessment years 1969 -70 and 1970 -71, on the following questions of law : '1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee corporation was an authority constituted under any law for the marketing of commodities; and 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the income of the corporation from letting of godowns and/or warehousing was exempt from tax under section 10(29) of the Income -tax Act, 1961.'
(2.) THE Income -tax Officer was of the view that the assessee is not entitled to exemption under section 10(29) of the Income -tax Act, 1961, and, therefore, he added the income from letting of godowns and/or warehouses, in respect of the assessment years 1969 -70 and 1970 -71. The assessee went in appeal before the Appellate Assistant Commissioner and the Appellate Assistant Commissioner allowed the appeals and held that the assessee was entitled to exemption under section 10(29) in respect of the income arising from letting of godowns and/or warehouses. The matter was taken up before the Income -tax Appellate Tribunal by the Department and the Tribunal upheld the view of the Appellate Assistant Commissioner, whereon reference applications were made on behalf of the Revenue before the Tribunal. At the very outset, it may be stated that there have been decisions of various High Courts on the point which we have been called upon to answer. Five High Courts, namely, Allahabad, Punjab and Haryana, Gujarat, Karnataka and Delhi have taken the view that warehousing corporations constituted under the Warehousing Corporations Act, whether Central or State, are authorities constituted under the Warehousing Corporations Act for marketing of commodities and their income from letting of godowns and warehouses would be exempt under section 10(29) of the Income -tax Act. These decisions are U.P. State Warehousing Corporation v. ITO : [1974]94ITR129(All) , CIT v. Haryana Warehousing Corporation , Addl. CIT v. Karnataka State Warehousing Corporation : [1980]125ITR136(KAR) , CIT v. Gujarat State Warehousing Corporation : [1980]124ITR282(Guj) and CIT v. Central Warehousing Corporation : [1985]156ITR407(Delhi) .
(3.) ON behalf of the Revenue, reliance has been placed on two decisions of the Calcutta High Court, which are reported in Calcutta State Transport Corporation v. CIT : [1977]108ITR922(Cal) and Singal Brothers P. Ltd. v. CIT : [1980]124ITR147(Cal) .;