The Agricultural Market Committee, Rajahmundry v. The ITO, Ward-4, Rajahmundry

ITA 183/VIZ/2009 | 2003-2004
Pronouncement Date: 12-08-2010 | Result: Allowed

Appeal Details

RSA Number 18325314 RSA 2009
Assessee PAN AACTA0347F
Bench Visakhapatnam
Appeal Number ITA 183/VIZ/2009
Duration Of Justice 1 year(s) 3 month(s) 29 day(s)
Appellant The Agricultural Market Committee, Rajahmundry
Respondent The ITO, Ward-4, Rajahmundry
Appeal Type Income Tax Appeal
Pronouncement Date 12-08-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 12-08-2010
Assessment Year 2003-2004
Appeal Filed On 13-04-2009
Judgment Text
ITA NOS.27 & 183 OF 09//VIZAG/2009 AMC RAJAHMUNDRY PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 27/VIZAG/2009 ASSESSMENT YEAR:NA AGRICULTURAL MARKET COMMITTEE RAJAHMUNDRY VS. CIT RAJAHMUNDRY (APPELLANT) PAN NO: AACTA 0347 F (RESPONDENT) ITA NO. 183/VIZAG/2009 ASSESSMENT YEAR:2003-04 AGRICULTURAL MARKET COMMITTEE RAJAHMUNDRY VS. ITO WARD-4 RAJAHMUNDRY (APPELLANT) PAN NO: AACTA 0347 F (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI CA RESPONDENT BY: SHRI SUBRATA SARKAR CIT(DR) ORDER PER BENCH: 1. THE TWO APPEALS HAVE BEEN FILED BY THE ASSESSEE. THE APPEAL NUMBERED AS ITA NO.27/VIZAG/2009 IS DIRECTED AGAINS T THE ORDER OF THE LEARNED CIT RAJAHMUNDRY IN REFUSING TO GRANT REGIST RATION U/S 12AA OF THE ACT FROM THE DATE OF INCEPTION OF THE ASSESSEE BY C ONDONING THE DELAY IN FILING THE APPLICATION SEEKING REGISTRATION U/S 12A A OF THE ACT. WE TAKE UP THAT APPEAL FIRST. 2 IT WAS BROUGHT TO OUR NOTICE BY LEARNED AUTHORISED REPRESENTATIVE THAT THIS BENCH OF THE TRIBUNAL IN THE CASE OF OTH ER AGRICULTURAL MARKETING COMMITTEES HAS CONSISTENTLY PASSED ORDERS DIRECTIN G THE LEARNED CIT TO CONDONE THE DELAY IN FILING APPLICATION SEEKING REG ISTRATION U/S 12AA OF THE ACT IN VIEW OF THE PECULIAR CIRCUMSTANCES UNDER WHI CH THEY ARE PLACED. THE LEARNED AUTHORISED REPRESENTATIVE IN THIS REGARD PL ACED A COPY OF THE ORDER ITA NOS.27 & 183 OF 09//VIZAG/2009 AMC RAJAHMUNDRY PAGE 2 OF 4 DATED 30-5-2008 PASSED BY THIS BENCH IN A GROUP OF CASES RELATING TO AGRICULTURAL MARKET COMMITTEES IN ITA NO.42/VIZAG/2 008 AND OTHERS. WE HAVE GONE THROUGH THE SAID ORDER AND EXTRACT BELOW THE RELEVANT OBSERVATIONS: 5. IT IS NOT IN DISPUTE THAT ALL THESE COMMITTEES ARE LOCAL AUTHORITIES CONSTITUTED BY THE GOVERNMENT OF ANDHRA PRADESH UNDER THE ANDHRA PRADESH (AGRICULTURAL PROD UCE AND LIVESTOCK) MARKETS ACT 1966 AND THESE COMMITTEES A RE GOVERNED BY THE SAID ACT. THE ELIGIBILITY OF THESE COMMITTEES FOR GETTING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT IS ALSO NOT IN DISPUTE AS THE LEARNED CIT H AS GRANTED REGISTRATION FROM 1.4.2007. ALL THESE ASSESSEES HAV E ALSO NARRATED CHRONOLOGICALLY THE REASONS FOR THE DELAY IN FILING THE APPLICATION. ALSO IT IS A FACT THAT ALL THESE M ARKET COMMITTEES HAVE ACTED IN ACCORDANCE WITH THE DIRECT IONS OF THE GOVERNMENT OF ANDHRA PRADESH AS THEY ARE LOCAL BODIES UNDER THE CONTROL OF THE STATE GOVERNMENT. THE INCOM E TAX DEPARTMENT HAS ALSO NOT FOUND OUT ANYTHING TO SAY T HAT THESE ASSESSEES HAVE CONTRAVENED THE PROVISIONS OF THE INCOME TAX ACT SINCE THEIR RESPECTIVE DATES OF INCEP TION. IN THESE CIRCUMSTANCES WE SEE NO REASON WHY THE LEARN ED CIT COULD NOT CONDONE THE DELAY IN FILING THE APPLICATI ONS. 6. IN VIEW OF THE ABOVE WE DIRECT THE LEARNED COMM ISSIONER OF INCOME TAX-2 VISAKHAPATNAM TO CONDONE THE DELAY IN THE FILING APPLICATIONS FOR REGISTRATION U/S 12AA O F THE INCOME TAX ACT AND TO GRANT REGISTRATION TO THESE AS SESSEES UNDER SECTION 12AA OF THE INCOME TAX ACT WITH EFFEC T FROM THE DATE OF THEIR RESPECTIVE INCEPTION. 2.1 IN THE INSTANT CASE ALSO THE ASSESSEE HAS E XPLAINED BEFORE THE LEARNED CIT THE VARIOUS REASONS WHICH HAVE CAUSED T HE DELAY IN FILING THE APPLICATIONS SEEKING REGISTRATION U/S 12AA OF THE A CT. HENCE CONSISTENT WITH THE VIEW TAKEN IN THE CASES CITED ABOVE WE DIRECT THE LEARNED CIT TO CONDONE THE DELAY IN FILING THE APPLICATION SEEKING REGISTRATION U/S 12AA OF THE ACT AND TO GRANT REGISTRATION W.E.F. THE DATE O F ITS INCEPTION. 3. THE APPEAL NUMBERED AS ITA NO.183/VIZAG/2009 IS DIRECTED AGAINST THE ORDER DATED 12-02-2009 PASSED BY LEARNED CIT (A ) RAJAHMUNDRY IN THE QUANTUM ASSESSMENT PROCEEDINGS FOR THE ASSESSMENT Y EAR 2003-04. THE ASSESSING OFFICER REFUSED TO GRANT EXEMPTION U/S 11 OF THE ACT FOR THE YEAR ITA NOS.27 & 183 OF 09//VIZAG/2009 AMC RAJAHMUNDRY PAGE 3 OF 4 UNDER CONSIDERATION SINCE THE LEARNED CIT HAD GRAN TED REGISTRATION U/S 12AA OF THE ACT ONLY W.E.F. 1-4-2007 ONLY I.E THE ASSESSEE DID NOT HAVE REGISTRATION U/S 12AA OF THE ACT FOR THE ASSESSMENT YEAR 2003-04 WHEN THE ASSESSMENT WAS PASSED. THE SAID ASSESSMENT ORDER WA S CONFIRMED BY THE LEARNED CIT (A) AND HENCE THE ASSESSEE IS IN APPEAL BEFORE US. 3.1 THE ASSESSEE VIDE HIS LETTER DATED 15-12-2009 HAS FILED REVISED GROUNDS OF APPEAL. THOUGH THE ASSESSEE HAS RAISED A S MANY AS 11 GROUNDS THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THA T THE ONLY LEGAL GROUND THAT IS PRESSED FOR CONSIDERATION IS WHETHER THE IN COME OF THE APPELLANT IS CONSIDERED EXEMPT U/S 10(26AAB) OF THE INCOME TAX A CT 1961 IN AS MUCH AS THE INSERTION OF SEC.10(26AAB) BY THE FINANCE AC T 2008 IS TO BE CONSIDERED AS RETROSPECTIVE AND RETROACTIVE IN ITS OPERATION. 3.2 THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE SAID LEGAL ISSUE IS ALSO COVERED BY THE DECISION OF THIS BENCH PASSED IN THE HANDS OF VARIOUS AGRICULTURAL MARKET COMMITTEES BY HOLDING T HAT THE INCOME OF THE AMCS IS EXEMPT UNDER SECTION 10(26AAB) OF THE ACT. 3.3. WE NOTICE THAT THIS BENCH HAS CONSIDERED TH E ABOVE SAID ISSUE AND IN A BATCH OF APPEALS I.E. IN I.T.A.NO.90/VIZAG/20 07 AND BATCH THIS BENCH VIDE ITS 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 THAT 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 LEGISLATUR E OF NOT TAXING THE INCOME OF AMCS CONSTITUTED UNDER ANY LAW FOR THE TIME BEING IN FORCE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICULTURAL PRODUCE AN D HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OPERAT ION AND APPLICABLE EVEN FOR THE PRIOR YEARS WE ORDER ACCORDINGLY. ITA NOS.27 & 183 OF 09//VIZAG/2009 AMC RAJAHMUNDRY PAGE 4 OF 4 CONSISTENT WITH THE VIEW TAKEN IN THOSE CASES WE H OLD THAT THE INCOME OF THE ASSESSEE HERE IN IS ALSO EXEMPT AND ACCORDINGLY WE SET ASIDE THE ORDERS PASSED BY LEARNED CIT(A) AND THE ASSESSING OFFICER FOR THE ASSESSMENT YEAR 2003-04. 4. IN THE RESULT BOTH THE APPEALS OF THE ASSESSEE A RE ALLOWED. PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 12-08-2010 COPY TO 1 AGRICULTURAL MARKET COMMITTEE D.NO.23-1-9 KORUKO NDA ROAD RAJAHMUNDRY 2 THE COMMISSIONER OF INCOME TAX RAJAHMUNDRY 3 4. THE ITO WARD-4 RAJAHMUNDRY THE CIT(A) RAJAHMUNDRY 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM