Judgment

PATHAK, CJI.:- 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.

2. The respondent assessee is a co-operative society registered under the Madras Cooperative Societies Act. The assessee entered into an agreement with the State Government during the previous year ending 30th June, 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. 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. During the previous year relevant to the assessment year 1961-62 the assessee received a sum of Rs. 31,316/ -, on this account, the amount being described as a commission.

3. In assessment proceedings for the assessment year 1961-62 the assessee claimed exemption from tax under S. 14(3)(iv) of the Indian I