The ITO, Ward-2, Vizianagaram v. M/s Agricultural Market Committee, Vizianagaram, Vizianagaram

CO 14/VIZ/2010 | 2003-2004
Pronouncement Date: 19-05-2010 | Result: Dismissed

Appeal Details

RSA Number 1425323 RSA 2010
Assessee PAN AAALA0869P
Bench Visakhapatnam
Appeal Number CO 14/VIZ/2010
Duration Of Justice 1 month(s) 18 day(s)
Appellant The ITO, Ward-2, Vizianagaram
Respondent M/s Agricultural Market Committee, Vizianagaram, Vizianagaram
Appeal Type Cross Objection
Pronouncement Date 19-05-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 19-05-2010
Assessment Year 2003-2004
Appeal Filed On 31-03-2010
Judgment Text
PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM B EFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI B.R.BASKARAN ACCOUNTANT MEMBER SL. NO. CASE NO. ASST. YEAR P.A.N.NO. APPELLANTS RESPONDENTS 1 ITA NO.107/VIZ/2010 2003-04 AAALA 0869 P ITO WARD-2 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM. 2 CO NO.14/VIZ/2010 2003-04 AAALA 0869 P AGRICULTUR AL MARKET COMMITTEE VIZIANAGARAM ITO WARD-2 VIZIANAGARAM 3 ITA NO.108/VIZ/2010 2004-05 AAALA 0869 P ITO WARD-2 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM. 4 CO NO.15/VIZ/2010 2004-05 AAALA 0869 P AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM ITO WARD-2 VIZIANAGARAM 5 ITA NO.109/VIZ/2010 2005-06 AAALA 0869 P ITO WARD-2 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM. 6 CO NO.16/VIZ/2010 2005-06 AAALA 0869 P AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM ITO WARD-2 VIZIANAGARAM 7 ITA NO.110/VIZ/2010 2006-07 AAALA 0869 P ITO WARD-2 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM. 8 CO NO.17/VIZ/2010 2006-07 AAALA 0869 P AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM ITO WARD-2 VIZIANAGARAM 9 ITA NO.111/VIZ/2010 2003-04 AAALA 0409 B ITO WARD-1 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM. 10 CO NO.11/VIZ/2010 2003-04 AAALA 0409 B AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM ITO WARD-1 VIZIANAGARAM 11 ITA NO.112/VIZ/2010 2004-05 AAALA 0409 B ITO WARD-1 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM. 12 CO NO.12/VIZ/2010 2004-05 AAALA 0409 B AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM. ITO WARD-1 VIZIANAGARAM 13 ITA NO.113/VIZ/2010 2006-07 AAALA 0409 B ITO WARD-1 VIZIANAGARAM. AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM.. 14 CO NO.13/VIZ/2010 2006-07 AAALA 0869 P AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM. ITO WARD-1 VIZIANAGARAM PAGE 2 OF 3 APPELLANT BY : SHRI SUBRATA SARKAR CIT-DR RESPONDENTS BY: SHRI BV RAO ORDER PER BENCH: - THE APPEALS FILED AT THE INSTANCE OF THE REVENUE AR E DIRECTED AGAINST THE ORDER OF THE LD CIT (A) GUNTUR PASSED AGAINST THE QUANTUM A SSESSMENTS RELATING TO ASSESSMENT YEARS MENTIONED AGAINST EACH OF THE APPEAL. BY FIL ING THE CROSS OBJECTION THE ASSESSES ARE SUPPORTING THE ORDER OF LD CIT(A). 2. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS T HE ONLY ISSUE THAT EMERGES IS WHETHER THE LD CIT (A) IS RIGHT IN HOLDING THAT THE SECTION 10(26AAB) IS RETROACTIVE IN OPERATION AND THEREBY THE INCOME OF THESE ASSESSEES ARE EXEMPT U/S 10(26AAB) OF THE ACT. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. FOR THE SAKE OF CONVENIENCE WE EXTRACT THE OPERATIVE PART OF THE OR DER OF THE LD CIT (A). SINCE WE ARE OF THE VIEW THAT THE PROVISION S OF SECTION 10(26AAB) OF THE INCOME TAX ACT ARE INTENDED TO BE RETROACTIV E IN OPERATION HAVING BEEN INSERTED IN THE STATUTE BOOK WITH A VIE W TO CLARIFY THE POSITION OF AMCS EVEN UNDER PRE-EXISTING STATUTE A ND THE FINANCE MINISTER HAVING SPECIFICALLY MENTIONED WHILE REPLY ING TO THE DEBATE IN THE LOK SABHA THAT THERE IS NO INTENTION TO TAX AM CS THE ENTIRE FEE/INCOME COLLECTED/RECEIVED HAS TO BE CONSIDERED AS EXEMPT FROM THE LEVY OF TAX IN WHICH EVEN THE DECISION ON THE ANCIL LARY ISSUE IS OF ACADEMIC IMPORTANCE AND THUS NEED NOT BE GONE INTO RESPECTFULLY FOLLOWING THE ABOVE DECISION OF HONBL E JURISDICTIONAL TRIBUNAL IT IS HELD THAT INSERTION OF SUB CLAUSE ( 26AAB) TO SE. 10 OF THE ACT IS ESSENTIALLY INTENDED TO DECLARE THE INTENTIO N OF THE LEGISLATURE OF NOT TAXING THE INCOME OF AMCS CONSTITUTED UNDER ANY LAW FOR THE TIME BEING IN FORCE FOR THE PURPOSES OF REGULATING THE M ARKETING OF AGRICULTURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OPERATION AND APPLICABLE EVEN FOR THE PRIOR YEARS. 4. WE NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THIS BENCH ON THE INSTANT ISSUE. IN A BATCH OF APPEALS I.E. IN I.T.A.NO.90/VIZAG/2007 AND BATCH I.T.A.T. VISAKHAPATNAM BENCH VIDE ORDER DT.28.11. 2008 HELD THAT THE INCOME OF THE AGRICULTURAL MARKET COMMITTEES IS EXEMPT UNDER SECT ION 10(26AAB) OF THE ACT. THE DECISION RENDERED IN THAT CASE IS EXTRACTED BELOW: PAGE 3 OF 3 HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE WE ARE OF THE FIRM VIEW THAT THE INSERTION OF SUB-CLAUSE (26AAB) TO SE CTION 10 OF THE INCOME TAX ACT IS ESSENTIALLY INTENDED TO DECLARE T HE INTENTION OF THE LEGISLATURE OF NOT TAXING THE INCOME OF AMCS CONSTI TUTED UNDER ANY LAW FOR THE TIME BEING IN FORCE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICULTURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OPERATION AND APPLICABLE EVEN FOR TH E PRIOR YEARS WE ORDER ACCORDINGLY. 5. SINCE THE LD CIT(A) HAS FOLLOWED THE DECISIO N RENDERED BY THIS BENCH WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. 6. IN THE RESULT THE APPEALS FILED BY THE REVE NUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEES ARE DISMISSED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 19-05-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MSB/UDC VISAKHAPATNAM DATE: 19TH MAY 2010 COPY TO 1. ITO WARD-2 VIZIANAGARAM. 2. ITO WARD-1 VIZIANAGARAM. 3. THE AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM. 4. THE AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM. 5. THE COMMISSIONER OF INCOME-TAX (APPEALS) VISAKHAPA TNAM. 7. THE COMMISSIONER OF INCOME TAX-1 VISAKHAPTNAM. 8. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISA KHAPATNAM 9. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM