The ITO, Ward-1, Srikakulam v. M/s Agricultural Market Committee, Ponduru

CO 36/VIZ/2010 | 2007-2008
Pronouncement Date: 01-09-2010 | Result: Dismissed

Appeal Details

RSA Number 3625323 RSA 2010
Assessee PAN AAALA0343A
Bench Visakhapatnam
Appeal Number CO 36/VIZ/2010
Duration Of Justice 23 day(s)
Appellant The ITO, Ward-1, Srikakulam
Respondent M/s Agricultural Market Committee, Ponduru
Appeal Type Cross Objection
Pronouncement Date 01-09-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 01-09-2010
Assessment Year 2007-2008
Appeal Filed On 09-08-2010
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 S NO. CASE NO. ASSTT YEAR PAN APPELLANT RESPONDENT 1 ITA NO.346/VIZAG/2010 2007-08 AAALA 0343 A ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE HIRAMANDALAM 2 ITA NO.347/VIZAG/2010 2007-08 AAALA 0361 J ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE RAJAM 3 ITA NO.348/VIZAG/2010 2007-08 AAALA 0599 G ITO WARD - 1 SRIKAKULAM AGRICULTURA L MARKET COMMITTEE PONDURU 4 ITA NO.349/VIZAG/2010 2007-08 AAALA 0404 F ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE NARASANNAPET 5 ITA NO.350/VIZAG/2010 2007-08 AAALA 0383 Q ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE AMADALAVALSA 6 ITA NO.351/VIZAG/2010 2007-08 AAALA 0362 M ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE PALAKONDA 7 CO NO.28/VIZAG/2010 (ITA 346/VIZAG/2010) 2007-08 AAALA 0343 A ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE HIRAMANDALAM 8 CO NO.34/VIZAG/20 10 (ITA 347/VIZAG/2010) 2007-08 AAALA 0361 J ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE RAJAM 9 CO NO.36/VIZAG/2010 (ITA 348/VIZAG/2010) 2007-08 AAALA 0599 G ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE PONDURU 10 CO NO.29/VIZAG/2010 (ITA 349/VIZAG/2010) 2007-08 AAALA 0404 F ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE NARASANNAPET 11 CO NO.30/VIZAG/2010 (ITA 350/VIZAG/2010) 2007-08 AAALA 0383 Q ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE AMADALAVALSA 12 CO NO.31/VIZAG /2010 (ITA 351/VIZAG/2010) 2007-08 AAALA 0362 M ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE PALAKONDA APPELLANT BY : SHRI SUBRATA SARKAR CIT-DR RESPONDENTS BY: SHRI B.V. RAO ORDER PER BENCH: - THE APPEALS FILED AT THE INSTANCE OF THE REVENUE AR E DIRECTED AGAINST THE COMMON ORDER OF THE LD CIT (A) VISAKHAPATNAM PASSE D AGAINST THE QUANTUM ASSESSMENTS RELATING TO ASSESSMENT YEAR 2007-08. B Y FILING THE CROSS OBJECTIONS ALL THE ASSESSEES ARE SUPPORTING THE ORDER OF LD CI T(A). 2. THE SOLITARY ISSUE URGED IN THIS APPEAL IS WHETH ER THE LD CIT (A) IS RIGHT IN HOLDING THAT THE SECTION 10(26AAB) IS RETROACTIVE I N OPERATION AND THEREBY THE INCOME OF THESE ASSESSEES ARE EXEMPT U/S 10(26AAB) OF THE ACT. PAGE 2 OF 3 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. FOR THE SAKE OF CONVENIENCE WE EXTRACT THE OPERATIVE PART OF THE ORDER OF THE LD CIT (A). 4. I HAVE CAREFULLY EXAMINED THE CONTENTION RAISED BY THE AUTHORIZED REPRESENTATIVE OF THE APPELLANT. THE ONL Y ISSUE FOR CONSIDERATION AS URGED BY THE AUTHORIZED REPRESENTA TIVE OF THE APPELLANT IS WHETHER THE INSERTION OF SECTION 10(26 AAB) OF THE INCOME TAX ACT 1961 WAS A DECLARATIVE ACT TO REMOVE DOUBTS EXISTING WITH REGARD TO THE EFFECT OF PRE-EXISTING STATUE AND HENCE RETROSPECTIVE IN OPERATION. IN THE DECISION R ELIED UPON BY THE AUTHORIZED REPRESENTATIVE OF THE APPELLANT OF T HE HON'BLE JURISDICTIONAL INCOME TAX APPELLATE TRIBUNAL IT HA S BEEN CONCLUDED AT PARA (14) OF THE ORDER AS UNDER:- SINCE WE ARE OF THE VIEW THAT THE PROVISIONS OF S ECTION 10(26AAB) OF THE INCOME TAX ACT 1961 ARE INTENDED TO BE RETROACTIVE IN OPERATION HAVING BEEN INSERTED IN T HE STATUTE BOOK WITH A VIEW TO CLARIFY THE POSITION OF AMCS EV EN UNDER THE PRE-EXISTING STATUTE AND THE FINANCE MINISTER HAVIN G SPECIFICALLY MENTIONED WHILE REPLYING TO THE DEBATE IN THE LOK SABHA THAT THERE IS NO INTENTION TO TAX AMCS THE ENTIRE FEE/I NCOME COLLECTED/RECEIVED HAS TO BE CONSIDERED AS EXEMPT F ROM THE LEVY OF TAX IN WHICH EVEN THE DECISION ON THE ANCILLARY ISSUE IS OF ACADEMIC IMPORTANCE AND THUS NEED NOT BE GONE INTO . RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE JURISDICTIONAL TRIBUNAL IT IS HELD THAT THE INSERTION OF SUB-CLAU SE (26AAB) TO SECTION 10 OF THE INCOME TAX ACT 1961 IS ESSENTIAL LY INTENDED TO DECLARE THE INTENTION OF THE LEGISLATURE OF NOT TAX ING THE INCOME OF AMCS CONSTITUTED UNDER ANY LAW FOR THE TIME BEIN G IN FORCE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICUL TURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OP ERATION 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 SECTION 10(26AAB) OF THE ACT. THE DECISION RENDERED IN THA T CASE IS EXTRACTED BELOW: HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE WE ARE OF THE FIRM VIEW THAT THE INSERTION OF SUB-CLAUSE (26AAB) TO SECTION 10 OF THE INCOME TAX ACT IS ESSENTIALLY INTENDED TO DECLARE THE INTENTION OF THE LEGISLATURE OF NOT TAXING THE INCO ME OF AMCS CONSTITUTED UNDER ANY LAW FOR THE TIME BEING IN FOR CE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICULTURA L PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OP ERATION AND APPLICABLE EVEN FOR THE PRIOR YEARS WE ORDER ACCOR DINGLY. PAGE 3 OF 3 5. LD DEPARTMENTAL REPRESENTATIVE SUBMITTED THA T THE HYDERABAD BENCH OF THE INCOME TAX APPELLATE TRIBUNAL HAS TAKEN A CONTRARY V IEW ON AN IDENTICAL ISSUE BUT NO MATERIAL WAS BROUGHT ON RECORD BEFORE US. W E HAVE CAREFULLY GONE THROUGH THE ORDERS PASSED BY THIS BENCH AND WE DO N OT FIND ANY INFIRMITY IN IT. CONSISTENT WITH THE VIEW TAKEN EARLIER BY THIS BENC H ON IDENTICAL ISSUES WE UPHOLD THE ORDER PASSED BY LD CIT(A) SINCE THE FIRST APPEL LATE AUTHORITY HAS FOLLOWED THE DECISION RENDERED BY THIS BENCH. 6. IN THE RESULT THE APPEALS FILED BY THE REVE NUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEE ARE DISMISSED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 1 ST SEPTEMBER 2010. SD /- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 01-09-2010. COPY TO 1. ITO WARD-1 SRIKAKULAM 2. THE AGRICULTURAL MARKET COMMITTEE HIRAMANDALAM 3. THE AGRICULTURAL MARKET COMMITTEE RAJAM 4. THE AGRICULTURAL MARKET COMMITTEE PONDURU 5. THE AGRICULTURAL MARKET COMMITTEE NARASANNAPET 6. THE AGRICULTURAL MARKET COMMITTEE AMDALAVALSA 7. THE AGRICULTURAL MARKET COMMITTEE PALAKONDA 8. THE COMMISSIONER OF INCOME-TAX (APPEALS) VISAKHAPAT NAM 6. THE COMMISSIONER OF INCOME TAX-2 VISAKHAPATNAM 7. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISA KHAPATNAM 8. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM