Agricultural Market Committee,Yellandu, Khammam v. ACIT, Khammam

CO 28/HYD/2009 | 2004-2005
Pronouncement Date: 14-05-2010 | Result: Partly Allowed

Appeal Details

RSA Number 2822523 RSA 2009
Assessee PAN AAALA0880A
Bench Hyderabad
Appeal Number CO 28/HYD/2009
Duration Of Justice 11 month(s) 3 day(s)
Appellant Agricultural Market Committee,Yellandu, Khammam
Respondent ACIT, Khammam
Appeal Type Cross Objection
Pronouncement Date 14-05-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted A
Tribunal Order Date 14-05-2010
Date Of Final Hearing 23-04-2010
Next Hearing Date 23-04-2010
Assessment Year 2004-2005
Appeal Filed On 10-06-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.546/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. BHADRACHALAM (PAN AAA LA 0880 A) (APPELLANT) (RESPONDENT) CO.17/HYD/2009 2003-04 (ITA NO.546/HYD/2009) A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. BHADRACHALAM VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.547/HYD/2009 A.Y. 2004-05 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. BHADRACHALAM (AAA LA 0880A) (APPELLANT) (RESPONDENT) CO.18/HYD/2009 2004-05 (ITA NO.547/HYD/2009) A.Y. 2004-05 AGRICULTURAL MARKET COMMITTEE. BHADRACHALAM VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.548/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. SATHUPALLY. (AAA LA 0857 B) (APPELLANT) (RESPONDENT) CO.19/HYD/2009 2004-05 (ITA NO.548/HYD/2009) A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. SATHUPALLY VS ACIT CIRCLE I KHAMMAM ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 2 2 (APPELLANT) (RESPONDENT) ITA NO.549/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. KALLUR. (PAN AAA LA 0854 C) (APPELLANT) (RESPONDENT) CO.20/HYD/2009 2003-04 (ITA NO.549/HYD/2009) A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. KALLUR. VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.554/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. WYRA. (PAN AAA LA 0883 D) (APPELLANT) (RESPONDENT) CO.25/HYD/2009 2003-04 (ITA NO.554/HYD/2009) A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. KHAMMAM (WYRA) VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.555/HYD/2009 A.Y. 2004-05 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. WYRA. (PAN AAA LA 0883 D) (APPELLANT) (RESPONDENT) CO.26/HYD/2009 (ITA NO.555/HYD/2009) A.Y. 2004-05 AGRICULTURAL MARKET COMMITTEE. KHAMMAM (WYRA) VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 3 3 ITA NO.556/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. YELLAUDU (PAN AA OFA 5017 H) (APPELLANT) (RESPONDENT) CO.27/HYD/2009 VS. ACIT CIRCLE I KHAMMAM (ITA NO.556/HYD/2009) A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. YELLAUDU (PAN AA OFA 5017 H) ITA NO.557/HYD/2009 A.Y. 2004-05 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. YELLAUDU (PAN AA OFA 5017 H) (APPELLANT) (RESPONDENT) CO.28/HYD/2009 2004-05 (ITA NO.557/HYD/2009) A.Y. 2004-05 AGRICULTURAL MARKET COMMITTEE. KHAMMAM. VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.562/HYD/2009 A.Y. 2004-05 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE. ENKOOR. (PAN AAA LA 0878 L) (APPELLANT) (RESPONDENT) CO.33/HYD/2009 2004-05 (ITA NO.562/HYD/2009) A.Y. 2004-05 AGRICULTURAL MARKET COMMITTEE. ENKOOR VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.563/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 4 4 KOTHAGUDAM (PAN AAA LA 0874 G) (APPELLANT) (RESPONDENT) CO.34/HYD/2009 2003-04 (ITA NO.563/HYD/2009) A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. KOTHAGUDAM VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) ITA NO.564/HYD/2009 A.Y. 2003-04 ACIT CIRCLE I KHAMMAM VS AGRICULTURAL MARKET COMMITTEE KOTHAGUDAM (PAN AAA LA 0874 G) (APPELLANT) (RESPONDENT) CO.35/HYD/2009 2004-05 (ITA NO.564/HYD/2009) A.Y. 2004-05 AGRICULTURAL MARKET COMMITTEE. KOTHAGUDAM VS ACIT CIRCLE I KHAMMAM (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.V.N. CHARYA DR RESPONDENT BY : SHRI SIVA KUMAR ITA NO.1177/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. BURGAMPAHAD KHAMMAN (PAN AAA LA 0884 E) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA NO.1178/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. CHARLA KHAMMAN (PAN AAA LA 0876 E) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 5 5 ITA NO.1179/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. DHAMMAPETA KHAMMAN (PAN AAA LA 0879 M) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA NO.1180/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. KOTHAGUDAM (PAN AAA LA 0874 G) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA NO.1181/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. MADHIRA KHAMMAM (PAN AAA LA 0875 H) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA NO.1182/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE. SATHUPALLY KHAMMAM (PAN AAA LA 0883 D) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA NO.1183/HYD/2009 A.Y. 2003-04 AGRICULTURAL MARKET COMMITTEE WYRA (PAN AAA LA 0883 D) VS CIT CIRCLE I VIJAYAWADA (APPELLANT) (RESPONDENT) ITA.146/HYD/2007 A.Y.2003-04 AGRICULTURAL MARKET COMMITTEE ATMAKUR (AA BA S 9022 N) VS CIT CIRCLE I NELLORE (APPELLANT) (RESPONDENT) ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 6 6 APPELLANT BY : NONE RESPONDENT BY : KVN CHARYA DR ITA NO.1097/HYD/2009 A.Y. 2006-07 (A BENCH) ITO WARD 3 NELLORE VS M/S AGRICULTURAL MARKET COMMITTEE NELLORE ( PAN AAALS 1293D) (APPELLANT) (RESPONDENT) ITA NO.1071/HYD/2009 A.Y. 2006-07 ITO WARD 4 NELLORE VS M/S AGRICULTURAL MARKET COMMITTEE KOVUR (PAN AABAS 9042 A) (APPELLANT) (RESPONDENT) ITA NO.1072/HYD/2009 A.Y. 2006-07 ITO WARD 4 NELLORE VS M/S AGRICULTURAL MARKET COMMITTEE ATMAKUR (AABAS 9022 N) (APPELLANT) (RESPONDENT) ITA NO.1070/HYD/2009 A.Y. 2006-07 ITO WARD 4 NELLORE VS M/S AGRICULTURAL MARKET COMMITTEE UDAYGIRI (AAABAS 9434 L) (APPELLANT) (RESPONDENT) ITA NO.1068/HYD/2009 A.Y. 2003-04 ITO WARD 4 NELLORE VS M/S AGRICULTURAL MARKET COMMITTEE KAVALI(PAN AAALS 1397J) (APPELLANT) (RESPONDENT) ITA NO.1069/HYD/2009 A.Y. 2006-07 ITO WARD 4 NELLORE VS M/S AGRICULTURAL MARKET COMMITTEE KAVALI (PAN AAALS 1397J) (APPELLANT) (RESPONDENT) ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 7 7 APPELLANT BY : NONE RESPONDENT BY : SHRI K.V.N. CHARYA DR ITA NO.869/HYD/2009 A.Y. 2004-05 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE NARAYANKHED MEDAK DISTT. (APPELLANT) (RESPONDENT) ITA NO.870/HYD/2009 A.Y. 2004-05 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE JOGIPET (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K. RAGHUNATH RESPONDENT BY : SHRI K.V.N. CHARYA ITA NO.862/HYD/2009 A.Y. 2003-04 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE HYDERABAD (APPELLANT) (RESPONDENT) CO.NO.11/HYD/2009 A.Y. 2003-04 IN ITA NO.862/HYD/2009 M/S AGRICULTURAL MARKET COMMITTEE HYDERABAD VS DY. DIT(E)I HYDERABAD (APPELLANT) (RESPONDENT) ITA NO.863/HYD/2009 A.Y. 2003-04 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE DHARMAPURI (APPELLANT) (RESPONDENT) CO.NO.12/HYD/2010 A.Y. 2003-04 IN ITA NO.863/HYD/2009 M/S AGRICULTURAL MARKET COMMITTEE DHARMAPURI VS DY. DIT(E)I HYDERABAD (APPELLANT) (RESPONDENT) ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 8 8 ITA NO.864/HYD/2009 A.Y. 2003-04 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE SIRCILLA (APPELLANT) (RESPONDENT) CO.NO.13/HYD/2010 A.Y. 2003-04 IN ITA NO.864/HYD/2009 M/S AGRICULTURAL MARKET COMMITTEE SIRCILLA VS DY. DIT(E)I HYDERABAD (APPELLANT) (RESPONDENT) ITA NO.871/HYD/2009 A.Y. 2004-05 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE MADHANAPURAM (PO) (APPELLANT) (RESPONDENT) ITA NO.1006/HYD/2009 A.Y. 2003-04 DY. DIT(E)I HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE VEMULAVADA (APPELLANT) (RESPONDENT) CO.NO.14/HYD/2010 A.Y. 2003-04 IN ITA NO.1006/HYD/2009 M/S AGRICULTURAL MARKET COMMITTEE VEMULAVADA VS DY. DIT(E)I HYDERABAD (APPELLANT) (RESPONDENT) ITA NO.934/HYD/2009 A.Y. 2004-05 DY. DIT(E) 2 HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE PATHIKONDA (AAALA 0457 H) (APPELLANT) (RESPONDENT) ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 9 9 CO.NO.9/HYD/2010 A.Y. 2004-04 IN ITA NO.934/HYD/2009 M/S AGRICULTURAL MARKET COMMITTEE PATHIKONDA (AAALA 0457 H) VS DY. DIT(E) 2 HYDERABAD (APPELLANT) (RESPONDENT) ITA NO.935/HYD/2009 A.Y. 2004-05 DY. DIT(E) 2 HYDERABAD VS M/S AGRICULTURAL MARKET COMMITTEE DHANE (PAN AAKFA 5657 K) (APPELLANT) (RESPONDENT) CO.NO.16/HYD/2010 A.Y. 2004-04 IN ITA NO.935/HYD/2009 M/S AGRICULTURAL MARKET COMMITTEE PATHIKONDA (PAN AAKFA 5657 K) VS DY. DIT(E) 2 HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. RAMA RAO RESPONDENT BY : SHRI K.V.N. CHARYA DR O R D E R PER BENCH: THESE APPEALS BY REVENUE AS WELL AS BY ASSESSEES AND CRO SS APPEALS BY THE ASSESSEES ARE DIRECTED AGAINST THE DIFFER ENT ORDERS OF CIT/CIT(A) CAME UP FOR HEARING BEFORE US ON 23.4.201 0. SINCE COMMON AND IDENTICAL ISSUES ARE INVOLVED IN ALL THE ABOV E APPEALS BOTH FILED BY THE REVENUE AS WELL AS ASSESSEE AND CROSS OBJECTION S FILED BY THE ASSESSEE THESE ARE HEARD TOGETHER AND DISPOSED OFF BY THIS COMBINED ORDER FOR THE SAKE OF CONVENIENCE. ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 10 10 2. FIRST WE WILL TAKE UP THE APPEALS FILED BY THE R EVENUE. WE FIND THAT THE ISSUES RAISED IN THESE APPEALS ARE SQUARELY COVE RED IN FAVOUR OF THE REVENUE BY THE ORDER OF THE CO-ORDINATE B B ENCH IN THE CASE OF AGRICULTURE MARKET COMMITTEE MADHIRA AND OTHERS IN I TA NO.542/HYD/2009 AND OTHERS DATED 26.3.2010 WHEREIN IT WAS HELD THAT THE ASSESSEES ARE NOT ELIGIBLE FOR EXEMPTION U/S 10(26AAB ) OF THE ACT FOR THE ASSESSMENT YEARS UNDER CONSIDERATION WHEREIN THEY HAVE FOLLOWED THE JUDGEMENT OF THE APEX COURT IN THE CASE OF AGRICULTURE PRODUCE MARKET COMMITTEE (APMC) REPORTED IN AGRICULT URAL PRODUCE MARKET COMMITTEE NARELA VS. CIT & OTHERS (305 ITR 1) (SC). RESPECTFULLY FOLLOWING THE SAME ORDER WE HOLD THAT THE ASSESSEE TRUSTS ARE NOT ELIGIBLE FOR EXEMPTION U/S 10(26AAB) OF THE ACT FOR THE ASSESSMENT YEARS UNDER CONSIDERATION. ACCORDINGLY WE ALLOW THE APPEALS OF THE REVENUE. 3. NOW COMING TO THE APPEALS FILED BY THE ASSESSEE IN IT A NOS.1177/H/09 TO 1183/H/09 WITH REGARD TO NOT CONDONI NG THE DELAY IN FILING THE APPLICATION FOR REGISTRATION UNDER S.12A O F THE ACT. IN THIS CASES THERE WAS A DELAY IN FILING THE APPLICATION FOR REGISTRATION. THE ASSESSEE FILED THE APPLICATION FOR REGISTRATION AS FOLLOWS: ITA NO. DATE OF FILING APPLICATION FOR REGISTRATION U/S 12A DUE DATE FOR FILING THE APPLICATION 1171 30.5.2007 16.5.1977 1178 31.5.2007 29.1.1977 1179 28.5.2007 18.3.1999 1180 28.5.2007 28.10.1969 1181 29.5.2007 28.10.1969 1182 28.5.2007 14.7.1977 1183 28.5.2007 26.7.1984 SINCE THERE WAS A DELAY IN FILING THE APPLICATION FOR U/S 12A REGISTRATION THE PROVISIONS OF CLAUSE (A) SUB CLAUSE (1 ) OF THE SEC.12 A OF THE IT ACT WILL APPLY. AS PER THE FIRST PROVISIO T HE CIT HAS TO RECORD ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 11 11 THE REASONS IN WRITING AND HE SHOULD BE SATISFIED THAT T HE PERSON IN RECEIPT OF THE INCOME WAS PREVENTED FROM MAKING THE AP PLICATION BEFORE THE EXPIRY OF THE PERIOD FOR SUFFICIENT REASONS. IN THE PRESENT CASES THE ASSESSEES MUST HAVE FILED THE APPLICATION FOR REGISTRAT ION SOON AFTER THE HONBLE FINANCE MINISTER HAD MADE THE ANNOUNCEMENT IN THE BUDGET SPEECH IN THE YEAR 2002 SUBSEQUENT TO WHICH THE DEFINIT ION LOCAL AUTHORITY HAS BEEN AMENDED BY THE FINANCE ACT 2002 W. E.F. 1.4.2003. THE ASSESSEE NOT ABLE TO SHOW EVEN BEFORE US THE SATISFACT ORY REASON FOR FILING THE APPLICATION FOR REGISTRATION BELATEDLY BEF ORE THE DIT(E). THE ASSESSEES ARE IN SECOND ROUND BEFORE THIS TRIBUNAL. ON EAR LIER OCCASION TRIBUNAL SET ASIDE THE ISSUE TO THE FILE OF DIT(E) WIT H A DIRECTION TO GIVE AN OPPORTUNITY OF HEARING TO THE ASSESSEES AND THERE AFT ER PASS AN ORDER IN ACCORDANCE WITH LAW AFTER EXAMINE WHETHER THERE W AS SUFFICIENT CAUSE ON THE PART OF THE ASSESSEE FOR FILING THE APPLICATI ON FOR REGISTRATION BELATED. IN SPITE OF GIVING EFFECTIVE O PPORTUNITY TO THE ASSESSEES TO EXPLAIN THE REASON FOR DELAY IN FILING THE APPLICATION FOR REGISTRATION U/S 12A THE ASSESSEES HEREIN NOT SHOWN ANY RE ASONABLE CAUSE FOR FILING THE APPLICATION FOR REGISTRATION BELA TEDLY ACCORDINGLY WE ARE OF THE OPINION THAT CIT IS JUSTIFIED IN NOT COND ONING THE DELAY IN FILING THE APPLICATION FOR REGISTRATION AND REJECTING THE SAME . THE ACTION OF THE CIT IS CONFIRMED. THE ASSESSEES APPEALS ARE DISMISSED. 4. NOW WE WILL TAKE UP ASSESSEE APPEAL IN ITA NO.146 /H/2007. THE EFFECTIVE GROUND RAISED IS THAT WHETHER THE CIT [A ] IS ERRED IN DIRECTING THE EXCLUSION OF THE INCOME OF THE ASSESSEE ONLY FROM MARKET FEES AND LICENSE FEES AND ACCORDINGLY HE SHOULD HAVE HELD THAT THE ENTIRE INCOME OF THE ASSESSEE IS EXEMPT FROM INCOME TAX. THIS I SSUE SQUARELY COVERED AGAINST THE ASSESSEE BY THE ORDER OF THE TRIBUNAL THE CO- ORDINATE BENCH IN THE CASE OF AGRICULTURE MARKET COMMIT TEE MADHIRA AND OTHERS IN ITA NO.542/HYD/2009 AND OTHERS DATED 26. 3.2010 ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 12 12 WHEREIN IT WAS HELD THAT THE ASSESSEES ARE NOT ELIGIBLE FOR EXEMPTION U/S 10(26AAB) OF THE ACT FOR THE ASSESSMENT YEARS UNDER CO NSIDERATION BY FOLLOWING THE JUDGEMENT OF THE APEX COURT IN TH E CASE OF AGRICULTURE PRODUCE MARKET COMMITTEE (APMC) REPORTED IN AGRICULT URAL PRODUCE MARKET COMMITTEE NARELA VS. CIT & OTHERS (305 ITR 1) (SC). RESPECTFULLY FOLLOWING THE SAME WE HOLD THAT THE A SSESSEE TRUSTS ARE NOT ELIGIBLE FOR EXEMPTION U/S 10(26AAB) OF THE ACT F OR THE ASSESSMENT YEARS UNDER CONSIDERATION. ACCORDINGLY WE DISMISS THE A PPEAL OF THE ASSESSEE. 5. NOW WE WILL TAKE UP THE CROSS OBJECTIONS FILED BY THE ASSESSEE. NOW COMING TO CO NO.11 12 13 17/HYD/2010 AN D 18 19 20 25 26 27 28 33 34 AND 35/HYD/2010 CO NOS.14 9 AND 16/HYD/2010. IN THESE CROSS OBJECTIONS THE ASSESSEES RAISED TH E FIRST ISSUE THAT CIT(A) ERRED IN DIRECTING THE EXCLUSION OF TH E INCOME OF THE ASSESSEE ONLY FROM MARKET FEES AND LICENSE FEES ON THE GROU ND THAT THE HONBLE ITAT VIZAKHAPATNAM IN ITS ORDER IN ITA NO.83 TO 93 111 159 160 305 335 352 356 TO 359 AND 367 TO 369/VIZAG /2007 DATED 28.11.2008 ALLOWED THE APPEAL ONLY IN RESPECT OF MARK ET FEES AND LICENSE FEES. ACCORDING TO THE ASSESSEE THE CIT(A) OUGHT HAVE APPRECIATED THAT HONBLE ITAT VIZAG IN ITS ORDER HEL D THAT INSERTION OF SEC.10 (26AAB) WAS ESSENTIALLY INTENDED TO DECLARE THE I NTENTION OF THE LEGISLATURE OF NOT TAXING THE INCOME OF AMCS AND ACCORDI NGLY SHOULD HAVE HELD THAT THE ENTIRE INCOME OF THE ASSESSEE IS EXEMP T FROM INCOME TAX. 6. AFTER GOING THROUGH THE ARGUMENT OF THE ASSESSEES COUNSEL WE ARE OF THE OPINION THAT THIS GROUND IS INFRUCTUOU S SINCE ON SIMILAR ISSUE IN THE REVENUE APPEALS WE HAVE HELD THAT ASSESSEES A RE NOT ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 13 13 ELIGIBLE FOR DEDUCTION U/S 10 (26AAB). ACCORDINGLY T HIS GROUND IS DISMISSED AS INFRUCTUOUS IN ALL ITS APPEALS. 7. COMING TO NEXT GROUND IN CO NO.11 12 13 AND 17/HYD/2010 WITH REGARD TO ALLOWABILITY OF EXEMPT ION U/S 11 & 12. WE HAVE HEARD BOTH THE PARITIES ON THIS ISSUE THE ASSE SSING OFFICER REJECTED THE CLAIM OF THE ASSESSEES REGARDING EXEMPTION U/ S 11 ON THE REASON THAT THE APPLICATION FOR REGISTRATION U/S 12A WE RE REJECTED BY DIT(EXEMPTIONS) HYDERABAD. HOWEVER THERE WAS NO DIS CUSSION IN THE ORDER OF THE CIT(A) ON THIS ISSUE. THOUGH THERE WAS DE LAY IN FILING THESE CROSS OBJECTIONS THE DELAY WAS CAUSED ON BONA FIDE REASONS T HAT THE ASSESSEE WAS IN THE BELIEF THAT ITS APPEAL WAS ALLOWED BY THE CIT(A) BY GRANTING THE EXEMPTION U/S 10(26AAB) AS SUCH THEY HAVE NOT FILED ANY CROSS OBJECTIONS. ONLY WHEN THE ISSUE WAS DECIDED AGAINST THE ASSESSEE BY THE TRIBUNAL IN THE CASE CITED SUPRA THE ASSESSEES WERE DECIDED TO FILE THESE CROSS OBJECTIONS. ACCORDINGLY WE ADMIT THE CRO SS OBJECTIONS AND SET ASIDE THE ISSUE RELATING TO EXEMPTION U/S 11 FOR FRESH CONSIDERATION TO CIT(A). THE CIT(A) DECIDE THE ISSUE AF TER GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE. ACCORDINGLY CO N OS. 11/HYD/2010 12 13 AND 17/HYD/2010 ARE PARTLY ALLOWE D FOR STATISTICAL PURPOSE. 8. NOW COMING TO CO. NOS. 18 19 20 25 26 27 28 33 34 AND 35/HYD/2010 AND CO NOS.14 9 AND 16/HYD/2010WITH REGARD TO ALLOWABILITY OF EXEMPTION U/S 11 & 12 OF THE IT ACT SINCE THERE IS NO DISCUSSION ON THIS ISSUE BY THE ASSESSING OFFICER WE FEEL IT APPROPRIATE TO DISPOSE THIS ISSUE TO THE FILE OF ASSESSING OFFICER. THE A SSESSING OFFICER IS DIRECTED TO VERIFY THE REGISTRATION U/S 12A OF THE A CT GRANTED TO THE ASSESSEE BY DIT(E) IF ANY THEREAFTER HE IS DIRECTED TO PASS AN ORDER IN ACCORDANCE WITH THE LAW AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO ITA NO.546/HYD/2009 & 50 THER APPEALS OF AGRICULTURAL MARKET COMMITTEE OF DIFFERENT PLACE S 14 14 THE ASSESSEE ON THIS ISSUE. ACCORDINGLY CO NOS.18 19 20 25 26 27 28 33 34 35 AND CO NOS.14 9 AND 16/HYD/2010 ARE ALLOWED FOR STATISTICAL PURPOSE. 9. IN THE RESULT APPEALS FILED BY THE REVENUE ARE ALLOWED AND THOSE OF ASSESSEES ARE DISMISSED AND CROSS OBJECTIONS FILED BY THE ASSESSEES ARE PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT 14.5.2010 SD/- SD/- G.C. GUPTA CHANDRA POOJARI VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 14 TH MAY 2010 COPY FORWARDED TO: 1. M/S AGRICULTURAL MARKET COMMITTEE BHADRACHALAM KHAMMAM SATHUPALLY KALLUR WYRA YELLAUDU ENKOOR KOTHAGUDAM MADHIRA ATMAKUR NELLORE KOVUR UDAYG IRI KAVALI MEDAK JOGIPET HYDERABAD DHARMAPURI SIRCIL LA MADHANAPURAM VEMULAVADA PATHIKONDA DHANE. 2. DY. DIT(E)-I & II HYDERABAD ACIT CIRCLE I KHA MMAM 3. CIT(A)-I II III IV V HYDERABAD. 4. 5. CIT CIRCLE 1 VIJAYAWADA NELLORE HYDERABAD ITO WARD WARD 4 NELLORE 6. THE D.R. ITAT HYDERABAD. NP