Agricultural Market Committee, Mahabubnagar, Hyderabad v. ITO, Mahabubnagar

ITA 1522/HYD/2010 | 2004-2005
Pronouncement Date: 13-01-2011 | Result: Partly Allowed

Appeal Details

RSA Number 152222514 RSA 2010
Bench Hyderabad
Appeal Number ITA 1522/HYD/2010
Duration Of Justice 1 month(s) 7 day(s)
Appellant Agricultural Market Committee, Mahabubnagar, Hyderabad
Respondent ITO, Mahabubnagar
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted SMC
Tribunal Order Date 13-01-2011
Assessment Year 2004-2005
Appeal Filed On 06-12-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI AKBER BASHA ACCOUNTANT MEMB ER ITA NOS.1522 & 1523/HYD/10 : ASST. YEARS: 2004-05 &20 03-04 AGRICULTURAL MARKET COMMITTEE MAHABUBNAGAR. (PAN:AABAA 0025 F) VS INCOME-TAX OFFICER WARD-2 MAHBOOBNAGAR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D. SATYANARAYANA RESPONDENT BY : SMT. NIVEDITA BISWAS O R D E R PER AKBER BASHA ACCOUNTANT MEMBER: THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST SEPARATE ORDERS OF THE CIT (A)-V HYDERABAD BOTH DATED 13-9-2010 AND THEY PERTAIN TO THE ASSESSMENT YEARS 2004-05 AND 2003-04 . SINCE COMMON ISSUES ARE INVOLVED IN THESE TWO APPEALS THESE ARE CLUBBED TOGETHER AND DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEE RAISED THE FOLLOWING COMMON GROUNDS BEFO RE US IN THESE TWO APPEALS. FOR THE SAKE OF BREVITY THE GROUNDS RAISED BY THE ASSESSEE IN ITA NO.1522/H/10 ARE REPRODUCED HEREIN B ELOW: ITA NOS.1522 AND 1 523/HYD/2010 AMC MAHABUBNAGAR. ================ ======== 2 1. THE ORDER OF THE CIT (A) IS ERRONEOUS BOTH ON FACT S AND IN LAW. 2. THE CIT (A) ERRED IN HOLDING THAT THE ASSESSING OFFICER I.E. ITO WARD-I MAHABUBNAGAR HAS JURISDICTION TO ASSESS THE APPE LLANT HEREIN. 3. THE CIT (A) ERRED IN CONFIRMING THE ORDER OF ASSESSMENT MADE BY THE ASSESSING OFFICER IN DETERMINING THE TOTAL INCOME AT RS.2 31 517. 4. THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSIN G OFFICER IN INITIATING PROCEEDINGS UNDER SECTION 148 AND ISSUE OF NOTICE UNDER SECTION 142(1) OF THE ACT. 5. THE CIT (A) ERRED IN CONFIRMING THE ACTION OF THE ASSE SSING OFFICER IN NOT ALLOWING EXEMPTION U/S 11 OF THE I T A CT. 6. THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A SSESSING OFFICER IN ASSESSING THE APPELLANT HEREIN WITHOUT CONSIDE RING THE FACT THAT THE FEES COLLECTED AND THE EXPENDITURE INCURRE D WAS IN ACCORDANCE WITH THE DIRECTIONS OF THE GOVERNMENT OR THE GOVERNMENTAL AUTHORITIES IN ACCORDANCE WITH THE PROVISI ONS OF A.P. (AGRICULTURAL PRODUCE AND LIVE STOCK) MARKETS ACT. T HE CIT(A) OUGHT TO HAVE HELD THAT THE RECEIPT AND THE PAYMENT WITH REGARD TO THE MARKET COMMITTEE ARE IN ACCORDANCE WITH THE DIR ECTIONS OF THE GOVERNMENT AND THEREFORE THE RECEIPT DOES NOT R EPRESENT THE INCOME OF THE APPELLANT HEREIN. 7. THE CIT (A) ERRED IN REJECTING THE GROUND THAT TH E EXPENDITURE INCURRED BY THE APPELLANT IS ALLOWABLE AS A DEDUCTION IN VIEW OF THE PROVISIONS OF SECTION 36(1)(XII) OF THE I T ACT. ITA NOS.1522 AND 1 523/HYD/2010 AMC MAHABUBNAGAR. ================ ======== 3 8. THE CIT (A) OUGHT TO HAVE SEEN THAT THE AMENDMENT BROUGHT ON STATUTE VIDE FINANCE ACT 2008 INTRODUCING SE CTION 10(23AAD) WAS RETROSPECTIVE AND NOT RETROSPECTIVE OR RET ROACTIVE. 9. THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE A SSESSING OFFICER IN LEVYING INTEREST U/S 234A OF RS.20 858; U/S 2 34B OF RS.24 760 AND U/S 234C OF RS.1 608/-. 10. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE GROUND NOS.1 3 AND 10 ARE GENERAL IN NATURE AND DO NOT REQUIRE ANY ADJUDICATION. THE GRO UND NOS. 2 AND 4 WERE NOT RAISED BEFORE THE CIT (A) AND THERE WAS NO D ISCUSSION BY THE CIT (A) ON THESE ISSUES. UNDER THESE CIRCUMSTANCES WE FE EL IT PROPER AND JUST TO RESTORE THESE ISSUES TO THE FILE OF THE CIT (A) FOR FRESH CONSIDERATION. THE CIT (A) IS DIRECTED TO PASS AN APPROP RIATE ORDER IN ACCORDANCE WITH LAW AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE ON THIS ISSUE. HENCE THESE TWO GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSE. 4. GROUND NO.5 IS WITH REGARD TO THE ACTION OF THE ASSESSING OFFICER IN NOT ALLOWING EXEMPTION UNDER SECTION 11 OF THE ACT. IT APPEARS THAT THE ASSESSEE HAS NOT PRODUCED ANY ORDER OF DIT(E) FO R REGISTRATION OF TRUST OR INSTITUTION UNDER SECTION 12AA OF THE ACT B EFORE THE LOWER AUTHORITIES. EVEN BEFORE US NO SUCH ORDER IS PRODUCED AND THEREFORE WE DO NOT SEE ANY INFIRMITY IN THE ORDERS OF THE LOWE R AUTHORITIES ON THIS ISSUE. HENCE THE GROUND RAISED BY THE ASSESSEE IS DISMISSED. ITA NOS.1522 AND 1 523/HYD/2010 AMC MAHABUBNAGAR. ================ ======== 4 5. GROUND NOS. 6 7 AND 8 ARE COVERED BY THE CONSOLIDAT ED ORDER OF THE TRIBUNAL DATED 26-3-2010 IN THE CASES OF AGRICULTURAL MARKET COMMITTEES WHEREIN THE TRIBUNAL DECIDED THESE I SSUES AGAINST THE ASSESSEES AND IN FAVOUR OF THE REVENUE. RESPECTFULLY F OLLOWING THE ABOVE DECISION OF THE TRIBUNAL WE HOLD THAT NO EXEMP TION IS AVAILABLE TO THE INCOME OF THE ASSESSEE UNDER SECTION 10(26AAB) OF THE ACT. IN VIEW OF THE ABOVE THESE GROUNDS RAISED BY THE ASSESSEE ARE DI SMISSED. WE FIND THAT IN THE GROUNDS OF APPEAL (GROUND NO.8 IN THE INSTANT CASE) IT IS WRONGLY MENTIONED AS SECTION 10(23AAD) OF THE ACT INSTEA D OF SECTION 10(26AAB). 6. GROUND NO.9 IS WITH REGARD TO LEVY OF INTEREST UN DER SECTIONS 234A 234B AND 234C OF THE ACT WHICH IS MERELY CONSEQUEN TIAL IN NATURE AND ACCORDINGLY THE SAME IS REJECTED. 7. IN THE RESULT BOTH THE APPEALS FILED BY THE ASSESSEE ARE TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 13 -01-2011. SD/- SD/- (G.C. GUPTA)) (AKBER BASHA) VICE PRESIDENT. ACCOUNTANT MEMBER. DT/- 13-01-2011. ITA NOS.1522 AND 1 523/HYD/2010 AMC MAHABUBNAGAR. ================ ======== 5 COPY FORWARDED TO: 1. SHRI S. RAMA RAO ADVOCATE FLAT NO.101 SHRIYA S RESIDENCY ROAD NO.9 HIMAYATNAGAR HYDERABAD. 2. 3. 4.. 5. JMR* ITO WARD-2 MAHBOOBNAGAR. CIT (A)-V HYDERABAD. CIT AP. HYDERABAD. THE DR ITAT HYDERABAD.