N.D. Venkatesh, J.—This is a reference under section 256(1) of the Income Tax Act, 1961. The question referred is as under :

"Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in not exempting the assessee's income of Rs. 1,20,206 under section 80P(2)(e) of the Income Tax Act, 1961 ?"

2. The assessee is a co-operative society. It claimed exemption under section 80P(2)(e) of the Income Tax Act regarding its income of Rs. 1,20,206 for the assessment year 1978-79. According to the assessee, this amount represented the commission it had received from the Karnataka Food and Civil Supplies Corporation for procurement of paddy and rice and reimbursement of transport charges. The Income Tax Officer held that no part of the income presented earnings from letting of godowns or no port of the income represented earnings from letting of godowns or warehouses of the society for the purposes of storage, processing or facilitating the marketing of commodities and, therefore, exemption under section 80P(2)(e) was not available to the assessee. The assessee appealed to the Commissioner (Appeals). He upheld the order of the Income Tax Officer. On fu