Income Tax Officer, Vizianagaram v. Agricultural Market Committee, Vizianagaram

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 SL. NO CASE NO. ASST. YEAR P.A.N. /GIR NO. APPELLANTS RESPONDENTS 1 ITA NO. 1 7 /VIZ/20 1 0 2003 - 04 GIR NO.A - 605 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE PUSAPATIREGA 2 ITA NO. 18 / VIZ/20 1 0 2005 - 06 GIR NO.A - 605 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE PUSAPATIREGA 3 ITA NO. 19 /VIZ/20 1 0 2006 - 07 GIR NO.A - 6 05 ITO WARD - 2 VIZIANAGARAM AGRICUL TURAL MARKET COMMITTEE PUSAPATIREGA 4 ITA NO.20 /VIZ/20 1 0 2005 - 06 GIR NO.A - 604 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE GAJAPATHINAGARAM 5 C.O NO.6/VIZAG/2010 (ITA NO.20/VIZ/2010) 2005 - 06 GIR NO.A - 604 I TO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE GAJAPATHINAGARAM 6 ITA NO.21/VIZ/2010 2006 - 07 GIR NO.A - 604 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE GAJAPATHINAGARAM 7 C.O NO.7/VIZ/2010 (ITA NO.21/VIZ/2010) 2006 - 07 GIR NO.A - 604 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE GAJAPATHINAGARAM 8 ITA NO.22/VIZ/2010 2003 - 04 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 9 C.O NO.1/VIZ/2010 (ITA NO.22/VIZ/2010) 2003 - 04 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 10 ITA NO.23/VIZ/2010 2004 - 05 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 11 C.O NO.2/VIZ/2010 (ITA NO.23/VIZ/2010) 2004 - 05 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTU RAL MARKET COMMITTEE SALURU 12 ITA NO.24/VIZ/2010 2005 - 06 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 13 C.O NO.3/VIZ/2010 (ITA 24/VIZ/2010) 2005 - 06 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 14 ITA NO.25/VIZ/2010 2006 - 07 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 15 C.O. NO.4/VIZ/2010 (ITA NO.25/VIZ/2010) 2006 - 07 GIR NO.A - 606 ITO WARD - 2 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE SALURU 16 ITA NO.28 /VIZ/2010 2006 - 07 AAALA 0343A ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE HIRAMANDALAM 17 C.O NO. 5 /VIZ/2010 (ITA NO.28/VIZ/2010) 2006 - 07 AAALA 0343A ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE HIRAMANDALAM 18 ITA NO.29/VIZ/2010 2006 - 0 7 AAALA 0383 Q ITO WARD - 1 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE AMADALAVALSA APPELLANT BY : SHRI SUBRATA SARKAR CIT-DR RESPONDENTS BY : NONE. ORDER PAGE 2 OF 3 PER BENCH: - THE APPEALS FILED AT THE INSTANCE OF THE REVENUE AR E DIRECTED AGAINST THE ORDER PASSED BY THE LD CIT (A) IN THE RESPECTIVE HA NDS OF THE ASSESSEE STATED ABOVE FOR THE ASSESSMENT YEARS STATED AGAINST THEIR RESPECTIVE NAME SUPRA. SOME OF THE ASSESSEES HAVE FILED CROSS OBJECTION IN SUPPORT OF THE ORDER OF LD CIT(A). 2. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS T HE ONLY ISSUE THAT EMERGES IS WHETHER THE LD CIT (A) IS RIGHT IN HOLD ING THAT THE SECTION 10(26AAB) IS RETROACTIVE IN OPERATION AND THEREBY THE INCOME OF THESE ASSESSEES ARE EXEMPT U/S 10(26AAB) OF THE ACT. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. WE NOTICE THAT LD CIT(A) HAS FOLLOWED THE DECISION RENDERED B Y THIS BENCH ON IDENTICAL ISSUES. LD CIT(A) HAS EXTRACTED THE FOLLOWING OBSE RVATIONS MADE BY THIS BENCH OF ITAT SINCE WE ARE OF THE VIEW THAT THE PROVISION S OF SECTION 10(26AAB) OF THE INCOME TAX ACT ARE INTENDED TO BE R ETROACTIVE IN OPERATION HAVING BEEN INSERTED IN THE STATUTE B OOK WITH A VIEW TO CLARIFY THE POSITION OF AMCS EVEN UNDER PRE -EXISTING STATUTE AND THE FINANCE MINISTER HAVING SPECIFICAL LY MENTIONED WHILE REPLYING TO THE DEBATE IN THE LOK SABHA THAT THERE IS NO INTENTION TO TAX AMCS THE ENTIRE FEE/INCOME COLLEC TED/RECEIVED HAS TO BE CONSIDERED AS EXEMPT FROM THE LEVY OF TAX IN WHICH EVEN THE DECISION ON THE ANCILLARY ISSUE IS OF ACAD EMIC IMPORTANCE AND THUS NEED NOT BE GONE INTO 4. 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 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. PAGE 3 OF 3 5. SINCE THE LD CIT(A) HAS FOLLOWED THE DECISIO N RENDERED BY THIS BENCH WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. 6. IN THE GROUNDS OF APPEAL THE REVENUE HAS PLA CED RELIANCE ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF AGRICULTURAL P RODUCE MARKET COMMITTEE NARELA & ANR REPORTED IN 305 ITR 1. WE MAY STATE HERE THAT THE SAID DECISION OF THE HONBLE SUPREME COURT WAS ALSO CONSIDERED BY TH E ITAT WHILE DELIVERING THE DECISION IN ITA NO.90/VIZAG/2007 AND BATCH REFERRED SUPRA. THE ISSUE BEFORE THE HONBLE SUPREME COURT IN THE ABOVE CITED CASE WAS E NTIRELY DIFFERENT AND THE INSTANT ISSUE I.E. WHETHER SECTION 10(26AAB) IS HA VING RETROACTIVE OPERATION OR NOT WAS NOT DECIDED BY THE HONBLE SUPREME COURT. 7. IN THE RESULT THE APPEALS FILED BY THE REVE NUE AND THE CROSS OBJECTIONS FILED BY THE ASSESSEES ARE DISMISSED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 26 TH APRIL 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 26-4-2010. COPY TO 1. THE ITO WARD-2 VIZIANAGARAM 2. THE ITO WARD-1 SRIKAKULAM 3. AGRICULTURAL MARKET COMMITTEE PUSAPATIREGA 4. AGRICULTURAL MARKET COMMITTEE GAJAPATHINAGARAM 5. AGRICULTURAL MARKET COMMITTEE SALURU 6. AGRICULTURAL MARKET COMMITTEE HIRAMANDALAM 7. AGRICULTURAL MARKET COMMITTEE AMADALAVALSA 8. THE COMMISSIONER OF INCOME-TAX (APPEALS) VISAKHAPAT NAM 9. THE COMMISSIONER OF INCOME TAX VISAKHAPATNAM 10. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISA KHAPATNAM 11. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM