Agricultural Market Committee, Achanta v. ACIT, Eluru

ITA 148/VIZ/2009 | 2004-2005
Pronouncement Date: 21-01-2010 | Result: Partly Allowed

Appeal Details

RSA Number 14825314 RSA 2009
Assessee PAN AAALA0387L
Bench Visakhapatnam
Appeal Number ITA 148/VIZ/2009
Duration Of Justice 10 month(s) 4 day(s)
Appellant Agricultural Market Committee, Achanta
Respondent ACIT, Eluru
Appeal Type Income Tax Appeal
Pronouncement Date 21-01-2010
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted Not Allotted
Tribunal Order Date 21-01-2010
Assessment Year 2004-2005
Appeal Filed On 17-03-2009
Judgment Text
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.147 / VIZAG/2009 2003 - 04 AAALA 0387 L AGRIC ULTURAL MARKET COMMITTEE ACHANTA ACIT CIRCLE - 1 ELURU 2 ITA NO.1 48 /VIZAG/2009 2004 - 05 AAALA 0387 L AGRICU LTURAL MARKET COMMITTEE ACHANTA ACIT C IRCLE - 1 ELURU. 3 ITA NO.270 /VIZAG/2009 2005 - 06 AAKFA 8420 C AGRICULTU RAL MARKET COMMITTEE AKIVIDU ITO WARD - 2 BHIMAVARAM 4 ITA NO.271 /VIZAG/2009 2006 - 07 AAKFA 8420 C AGRICULT URAL MARKET COMMITTEE AKIVIDU ITO WARD - 2 BHIMAVARAM 5 ITA NO. 230 /VIZAG/2009 2005 - 06 AAALA 0389 E AGRIC ULTURAL MARKET COMMITTEE NARASAPURAM ITO W ARD - 1 PALAKOLE APPELLANTS BY: SHRI G.V.N. HARI CA RESPONDENTS BY: SHRI SUBRATA SARKAR CIT-D R ORDER PER BENCH: - ALL THE APPEALS OF THESE ASSESSEES ARE DIRE CTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) RA JAHMUNDRY AGAINST THE QUANTUM ASSESSMENT RELATING TO THE ASSESSMENT YEAR MENTIONED AGAINST THE RESPECTIVE ITA NUMBERS. 2. THE FIRST TWO APPEALS ARE BARRED BY LIMITATI ON FOR A PERIOD OF 309 DAYS. HAVING REGARD TO THE SUBMISSIONS MADE BY THESE ASSE SSEES IN THEIR RESPECTIVE PETITION SEEKING CONDONATION OF DELAY WE CONDONE T HE DELAY IN FILING THESE APPEALS AND TAKE UP THEM FOR HEARING. 3. THOUGH ALL THE ASSESSEES HAVE RAISED SEVERAL GRO UNDS THE CORE ISSUE WHICH WAS PRESSED FOR CONSIDERATION WAS WITH REGAR D TO THE CLAIM OF EXEMPTION UNDER SECTION 10(26AAB) OF THE ACT. BY PLACING REL IANCE ON THE ORDER DATED 28- 11-2008 PASSED BY THIS BENCH IN I.T.A.NO.90/VIZAG/20 07 AND BATCH IT WAS 2 SUBMITTED THAT THE AMENDMENT TO SECTION 10(26AAB) I S CLARIFICATORY IN NATURE AND THEREFORE RETROACTIVE IN OPERATION IN THE LIGHT OF THE REPLIES GIVEN BY THE FINANCE MINISTER DURING THE COURSE OF DEBATE IN PARLIAMENT WHILE MOVING THE BILL AND HENCE BY APPLICATION OF SECTION 10(26AAB) OF THE AC T THE INCOME OF THE AGRICULTURAL MARKET COMMITTEE WHICH WAS ORIGINALLY CLAIMED TO BE EXEMPT UNDER SECTION 10(20) OF THE ACT IS OTHERWISE DESERVE TO B E TREATED AS NOT TAXABLE BY VIRTUE OF SECTION 10(26AAB) OF THE ACT. 4. IN A BATCH OF APPEALS I.E. IN I.T.A.NO.90/VI ZAG/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 BEL OW: 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. SINCE THE LEARNED COUNSEL APPEARING ON BEHALF OF TH E ASSESSEES MAINLY PRESSED FOR CONSIDERATION THE SAID CONCERNING EXEMP TION U/S 20(26AAB) HAVING REGARD TO THE FACT THAT THE ISSUE STANDS SQUARELY C OVERED BY THE AFORE-SAID DECISION WE REVERSE THE ORDERS PASSED BY THE TAX A UTHORITIES AND HOLD THAT THE INCOME OF THE ASSESSEES HEREIN IS EXEMPT FROM LEVY OF TAX BY VIRTUE OF RETROACTIVE OPERATION OF SECTION 10(26AAB) OF THE ACT AND DIREC T THE ASSESSING OFFICER ACCORDINGLY. 5. IN VIEW OF OUR DECISION ON THE ABOVE SAID ISSUE IT IS NOT NECESSARY TO CONSIDER VARIOUS OTHER ISSUES WHICH WERE URGED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. IT IS NOT OUT OF PLACE TO MENTION THAT T HE LEARNED COUNSEL DID NOT SERIOUSLY PRESS FOR CONSIDERATION THE OTHER GROUNDS IN VIEW OF THE ORDER PRONOUNCED BY US ON THE LEGAL ISSUE. 3 6. IN THE RESULT THE APPEALS FILED BY THE ASSE SSEE ARE PARTLY ALLOWED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 21-01-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM 21 ST JANUARY 2010 COPY TO 1. AGRICULTURAL MARKET COMMITTEE ACHANTA. 2. AGRICULTURAL MARKET COMMITTEE AKIVIDU. 3. AGRICULTURAL MARKET COMMITTEE NARASAPURAM 4. ACIT CIRCLE-1 ELURU. 5. ITO WARD-2 BHIMAVARAM. 6. ITO WARD-1 PALAKOLE 7. COMMISSIONER OF INCOME TAX (APPEALS) RAJAHMUNDRY 8. COMMISSIONER OF INCOME TAX RAJAHMUNDRY 9. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISAKH APATNAM 10. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM