Agricultural Market Committee, Pusapatiraga v. CIT, Visakhapatnam

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI B.R.BASKARAN ACCOUNTANT MEMBER SL. NO. CASE NO. ASSESSMENT YEAR P.A.N.NO. APPELLANT RESPONDENT 1. ITA 208/VIZ/2009 2003-04 TO 2006-07 AAALA 0903 G AMC PUSAPATIREGA CIT VISAKHAPATNAM 2. ITA 209/VIZ/2009 -DO- AAALA 0870 C AMC GAJAPAT HINAGARAM CIT VISAKHAPATNAM 3. ITA 210/VIZ/2009 -DO- AAALA 0409 B AMC PARVATH IPURAM CIT VISAKHAPATNAM 4. ITA 211/VIZ/2009 -DO- AAALA 0873 B AMC KOTHAVA LSA CIT VISAKHAPATNAM 5. ITA 212/VIZ/2009 -DO- AAALA 0866 C AMC KURUPAM CIT VISAKHAPATNAM 6. ITA 213/VIZ/2009 -DO- AAALA 0785 A AMC PADERU CIT VISAKHAPATNAM 7. ITA 214/VIZ/2009 -DO- AAALA 0867 P AMC BOBBIL I CIT VISAKHAPATNAM 8. ITA 215/VIZ/2009 -DO- AAALA 0791 L AMC YELAMAN CHILI CIT VISAKHAPATNAM 9. ITA 216/VIZ/2009 -DO- AAAAA 5896 K AMC BHEEMUN IPATNAM CIT VISAKHAPATNAM 10 ITA 217/VIZ/2009 -DO- AABAT 0424 H AMC CHINTAPAL E CIT VISAKHAPATNAM 11. ITA 218/VIZ/2009 -DO- AMC CHODAVARAM CIT VISA KHAPATNAM 12. ITA 219/VIZ/2009 -DO- AAALA 0872 A AMC SALURU C IT VISAKHAPATNAM 13. ITA 220/VIZ/2009 -DO- AAALA 0868 N AMC NARSIPAT NAM CIT VISAKHAPATNAM 14 ITA 221/VIZ/2009 -DO- AAALA 0886 Y AMC ANAKAPALL E CIT VISAKHAPATNAM 15 ITA 224/VIZ/2009 - DO - AAALA 0865 B AMC CHEEPURUPALLI CIT VISAKHAPATNAM 16 ITA 225/VIZ/2009 -DO- AMC VIZIANAGARAM CIT VIS AKHAPATNAM APPELLANTS BY: SHRI B.V. RAO CA RESPONDENT BY: G.S.S. GOPINATH DR ORDER PER BENCH: THESE APPEALS FILED AT THE INSTANCE OF THE AGRICULT URAL MARKET COMMITTEES ARE DIRECTED AGAINST THE ORDERS OF THE LEARNED COMM ISSIONER OF INCOME TAX-1 VISAKHAPATNAM. 2. ALL THESE COMMITTEES FILED APPLICATIONS WITH THE LEARNED COMMISSIONER OF INCOME TAX-2 VISAKHAPATNAM FOR REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX ACT 1961 ALONG WITH PETITIONS FOR CONDONATION OF DELAY IN FILING THE APPLICATIONS. HOWEVER THE LEARNED CIT REJECTED TH E PLEA FOR CONDONATION OF DELAY AND GRANTED REGISTRATION FROM 1.4.2007 I.E. FROM THE FIRST DAY OF THE FINANCIAL YEAR IN WHICH THE APPLICATIONS FOR REGISTRATION UND ER SECTION 12AA WERE FILED. AGGRIEVED BY THE ORDERS OF THE LEARNED CIT(A) IN NO T GRANTING REGISTRATION FROM THE DATE OF THEIR RESPECTIVE INCEPTION BY CONDONING THE DELAY THESE ASSESSEES FILED APPEAL BEFORE THE TRIBUNAL. THE ITAT SET ASI DE THE MATTER BACK TO THE FILE OF THE LD CIT FOR FRESH CONSIDERATION SINCE THESE ASSE SSEES COULD NOT PROPERLY ITA NOS.208-225/V/2009 2 EXPLAIN THE CAUSES OF DELAY BEFORE THE TRIBUNAL. I N THE SET ASIDE PROCEEDINGS LD CIT AGAIN PASSED ORDERS REFUSING TO CONDONE THE DEL AY. HENCE THESE ASSESSEES HAVE FILED PRESENT APPEALS BEFORE US. 3. THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT ALL THE ASSESSEES ARE LOCAL AUTHORITIES CONSTITUTED BY THE GOVERNMENT OF ANDHRA PRADESH. THEY WERE ORIGINALLY EXEMPTED UNDER SECTION 10(20) OF THE INCO ME TAX ACT UP TO THE ASSESSMENT YEAR 2002-2003. DUE TO THE AMENDMENT MA DE IN THAT SECTION THESE ASSESSEES WERE PRECLUDED FROM AVAILING EXEMPTION UN DER THAT SECTION WITH EFFECT FROM 1.4.2003. SINCE THESE ASSESSEES FALL UNDER TH E ADMINISTRATIVE CONTROL OF THE STATE GOVERNMENT OF AP THEY HAD TO OBTAIN NECESSAR Y INSTRUCTIONS IN THIS REGARD. LATER ON OBTAINING NECESSARY INSTRUCTIONS THESE AS SESSEES HAVE FILED THE APPLICATION FOR SEEKING REGISTRATION U/S 12AA OF TH E ACT ALONG WITH THE PETITION FOR CONDONATION OF DELAY. HOWEVER THE LD CIT REFUSED T O CONDONE THE DELAY AND GRANTED REGISTRATION WITH EFFECT FROM 1.4.2007. LE ARNED AR SUBMITTED THAT THE SIMILAR DELAYS IN THE CASE OF OTHER AGRICULTURAL MA RKETING COMMITTEES HAVE BEEN CONDONED BY THIS BENCH. ACCORDINGLY LEARNED AR PLE ADED THAT THE LEARNED CIT MAY BE DIRECTED TO CONDONE THE DELAY AND TO GRANT R EGISTRATION FROM THE DATE OF INCEPTION OF THE RESPECTIVE AGRICULTURAL MARKET COM MITTEES. 4. WE HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE ALSO AND PERUSED THE RECORD. 5. WE NOTICE THAT THIS BENCH VIDE ITS ORDER DA TED 30.05.2008 PASSED IN THE CASE OF AGRICULTURAL MARKET COMMITTEE SOMPETA AND OTHERS VS. ITO WARD 2 VISAKHAPATNAM IN ITA NO.42/VIZAG/2008 HAS CONDONED THE DELAY WITH THE FOLLOWING OBSERVATIONS:- IT IS NOT IN DISPUTE THAT ALL THESE COMMITTEES AR E LOCAL AUTHORITIES CONSTITUTED BY THE GOVERNMENT OF ANDHRA PRADESH UND ER THE ANDHRA PRADESH (AGRICULTURAL PRODUCE AND LIVE STOCK) MARKETS ACT 1966 AND THESE COMMITTEES ARE GOVERNED BY THE SAID ACT. THE ELIGIBILITY OF T HESE COMMITTEES FOR GETTING REGISTRATION UNDER SECTION 12AA OF THE INCOME TAX A CT IS ALSO NOT IN DISPUTE AS THE LEARNED CIT HAS GRANTED REGISTRATION FROM 1.4.2 007. ALL THESE ASSESSEES HAVE ALSO NARRATED CHRONOLOGICALLY THE REASONS FOR THE D ELAY IN FILING THE APPLICATIONS. ALSO IT IS A FACT THAT ALL THESE MARKET COMMITTEES HAVE ACTED IN ACCORDANCE WITH THE DIRECTIONS OF THE GOVERNMENT OF ANDHRA PRADESH AS THEY ARE LOCAL BODIES UNDER THE CONTROL OF THE STATE GOVERNMENT. THE INCO ME TAX DEPARTMENT HAS ALSO NOT FIND OUT ANYTHING TO SAY THAT THESE ASSESS EES HAVE CONTRAVENED THE PROVISIONS OF THE INCOME TAX ACT SINCE THEIR RESPECT IVE DATES OF INCEPTION. IN ITA NOS.208-225/V/2009 3 THESE CIRCUMSTANCES WE SEE NO REASON WHY THE LEARN ED CIT COULD NOT CONDONE THE DELAY IN FILING THE APPLICATIONS. 6. CONSISTENT WITH THE VIEW TAKEN IN THE CASE CITED ABOVE WE DIRECT THE LEARNED COMMISSIONER 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 ASSESSEES UNDER SECTION 12AA OF THE INCOME TAX ACT WITH EFFECT FROM THE DATE OF THEIR RESPECTIVE INCEPTION. 7. IN THE RESULT THE APPEALS FILED BY THE ASSESSEES ARE ALLOWED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 29-01- 2010 SD/- SD/- (SUNIL KUMAR YADAV) (B.R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM 29 TH JANUARY 2010 COPY TO 1. AGRICULTURAL MARKET COMMITTEE PUSAPATIREGA 2. AGRICULTURAL MARKET COMMITTEE GAJAPATHINAGARAM 3. AGRICULTURAL MARKET COMMITTEE PARVATHIPURAM 4. AGRICULTURAL MARKET COMMITTEE KOTHAVALSA 5. AGRICULTURAL MARKET COMMITTEE KURUPAM 6. AGRICULTURAL MARKET COMMITTEE PADERU 7. AGRICULTURAL MARKET COMMITTEE BOBBILI 8. AGRICULTURAL MARKET COMMITTEE YELAMANCHILI 9. AGRICULTURAL MARKET COMMITTEE BHEEMUNIPATNAM 10. AGRICULTURAL MARKET COMMITTEE CHINTAPALE 11. AGRICULTURAL MARKET COMMITTEE CHODAVARAM 12. AGRICULTURAL MARKET COMMITTEE SALURU 13. AGRICULTURAL MARKET COMMITTEE NARSIPATNAM 14. AGRICULTURAL MARKET COMMITTEE ANAKAPALLE 15. AGRICULTURAL MARKET COMMITTEE CHEEPURUPALLI 16. AGRICULTURAL MARKET COMMITTEE VIZIANAGARAM 16. THE COMMISSIONER OF INCOME TAX-1 VISAKHAPATNAM 17. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISA KHAPATNAM. 18. GUARD FILE BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM