The Ito Ward 1 Anakapalle v. M S Agricultural Market Committee Yanam

Page 1 Of 4 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 269 Viz 2009 2006 07 Aaaala 0675 M Agricultural Market Committeeundi Ito Ward 2 Bhimavaram 2 Ita No 301 Viz 2009 2003 04 Aaaala 0906 D Ito Ward 1 Anakapalle Agricultural Market Committee Chodavaram 3 Ita No 302 Viz 2009 2004 05 Aaala 0906 D Ito Ward 1 Anakapalle Agricultural Market Committee Chodavaram 4 Ita No 303 Viz 2009 2005 06 Aaala 0906 D Ito Ward 1 Anakapalle Agricultural Market Committee Chodavaram 5 Ita No 304 Viz 2009 2006 07 Aaala 0906 D Ito Ward 1 Anakapalle Agricultural Market Committee Chodavaram 6 Ita No 305 Viz 2009 2005 06 Aaala 00791 L Ito Ward 1 Anakapalle Agricultural Market Committeeyelamanchili 7 Ita No 306 Viz 2009 2006 07 Aaala 0791 L Ito Ward 1 Anakapalle Agricultural Market Committeeyelamanchili 8 Co No 58 Viz 2009 Ita No 305 Viz 2009 2005 06 Aaala 0791 L Ito Ward 1 Anakapalle Agricultural Market Committee Yelamanchili 9 Co No 59 Viz 2009 Ita 306 Viz 2009 2006 07 Aaala 0791 L Ito Ward 1 Anakapalle Agricultural Market Committee Yelamanchili 10 Ita No 307 Vi Z 2009 2004 05 Aaala 0868 N Ito Ward 1 Anakapalle Agricultural Market Committee Narsipatnam 11 Ita No 308 Viz 2009 2005 06 Aaala 0868 N Ito Ward 1 Anakapalle Agricultural Market Committee Narsipatnam 12 Ita No 309 Viz 2009 2006 07 Aaala 0868 N Ito Ward 1 Anakapalle Agricultural Market Committee Narsipatnam 13 Co No 60 Viz 2009 Ita 307 Viz 2009 2004 05 Aaala 0868 N Ito Ward 1 Anakapalle Agricultural Market Committee Narsipatnam 14 Co No 61 Viz 2009 Ita No 308 Viz 2009 2005 06 Ito Ward 1 Anakapalle Agricultural Market Committee Visakhapatnam 15 Co No 62 Viz 2009 Ita 309 Viz 2009 2006 07 Aaala 0868 N Ito Ward 1 Anakapalle Agricultural Market Committee Narsipatnam 16 Ita No 310 Viz 2009 2003 04 Aaala 0886 G Ito Ward 1 Anakapalle A Gricultural Market Committee Anakapalle 17 Ita No 311 Viz 2009 2004 05 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle 18 Ita No 312 Viz 2009 2005 06 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle 19 Ita No 313 Viz 2009 2006 07 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle 20 Co No 63 Viz 2009 Ita 310 Viz 2009 2003 04 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle Page 2 Of 4 21 Co No 64 Viz 2009 Ita 311 Viz 2009 2004 05 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle 22 Co No 65 Viz 2009 Ita 312 Viz 2009 2005 06 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle 23 Co No 66 Viz 2009 Ita 313 Viz 2009 2006 07 Aaala 0886 G Ito Ward Anakapalle Agricultural Market Committee Anakapalle 24 Ita No 315 Viz 2009 2006 07 Aaala 0599 G Ito Ward 1 Srikakulam Agricultural Market Committee Ponduru Assessee By Shri Subrata Sarkar Cit Dr Revenue By Shri None Order Per Bench The Appeals Filed At The Instance Of The Revenue As Well As The Cross Objections Filed At The Instance Of The Assessees Are Directed Against The Order Of The Ld Cit A I Visakhapatnam Passed Against The Quantum Assessment S Relating To Assessment Years Mentioned Against The Each Of The Ita Numbers Above 2 Though The Revenue Has Raised Several Grounds T He Only Issue That Emerges Is Whether The Ld Cit A Is Right In Holding That The Section 10 26 Aab Is Retroactive In Operation And Thereby The Income Of These Assessees Are Exempt U S 10 26 Aab Of The Act By Filing The Cross Objections Certain Asses Sees Have Only Supported The Order Of The Ld Cit A 3 We Have Heard The Parties And Carefully Perused The Record For The Sake Of Convenience We Extract The Operative Part Of The Or Der Of The Ld Cit A 4 I Have Carefully Examined The Contention Raised By The Authorised Representative Of The Appellant The Legal Issue Fo R Consideration As Urged By The Authorised Representative Of The Appel Lant Is Whether Insertion Of Sub Clause 26 Aab To Sec 10 Of The Ac T Was A Declarative Act To Remove Doubts Existing With Regard To The Ef Fect Of Pre Existing Statute And Hence Retrospective In Operation In Th E Decision Relied Upon By The Authorised Representative Of The Appell Ant Of The Honble Jurisdiction Itat It Has Been Concluded At Para 1 4 Of The Order As Under Page 3 Of 4 Since We Are Of The View That The Provisions Of Sec Tion 10 26 Aab Of The Income Tax Act Are Intended To Be Retroactive I N Operation Having Been Inserted In The Statute Book With A View To Cl Arify The Position Of Agricultural Market Committees Even Under Pre Exist Ing 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 Agricultural Market Committees The Entire Fee Income Collected Received Has To Be Considered As Exempt F Rom The Levy Of Tax In Which Even The Decision On The Ancillary Issue I S Of Academic Importance And Thus Need Not Be Gone Into Respectfully Following The Above Decision Of The Ho Nble Jurisdictional Tribunal It Is Held That Insertion Of Sub Clause 26 Aab To Sec 10 Of The Act Is Essentially Intended To Declare The Intentio N Of The Legislature Of Not Taxing The Income Of Amcs Constituted Under Any Law For The Time Being In Force For The Purposes Of Regulating The M Arketing Of Agricultural Produce And Hence It Has To Be Treated As Retroactive In Operation And Applicable Even For The Prior Years Needless To Mention That Judgement Delivered By The Jurisdictional Trib Unal Is Binding And It Is Necessary For Judicial Unity And Discipline That All Authorities Below The Tribunal Must Accept As Binding The Judgement O F The Tribunal These Are The Views Of The Honble High Court Of Bo Mbay In The Case Of Bank Of Baroda V H C Shrivastava Reported In 2 56 Itr 385 Accordingly The Income If Any Of The Appellant I S Not Chargeable To Tax Thus The Legal Issue Being Settled In Favour Of The Appellant Because Of The Decision Of The Honble Jurisdiction Al Tribunal I Am Not Inclined To Go Into The Other Grounds Of Appeals Ra Ised By The Appellant 4 We Notice That The Ld Cit A Has Followed The Decision Rendered By This Bench On The Instant Issue 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 26 Aab 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 26 Aab To Se Ction 10 Of The Income Tax Act Is Essentially Intended To Declare T He Intention Of The Legislature Of Not Taxing The Income Of Agricultura L Market Committees Constituted Under Any Law For The Time B Eing In Force For The Purposes Of Regulating The Marketing Of Agr Icultural Produce And Hence It Has To Be Treated As Retroactive In Op Eration And Applicable Even For The Prior Years We Order Accor Dingly 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 Page 4 Of 4 6 In The Result The Appeals Filed By The Reve Nue Are Dismissed And The Cross Objections Filed By The Assessees Are Allowed Pronounced Accordingly In The Open Court On 6 Th January 2010 Sd Sd Sunil Kumar Yadav B R Baskaran Judicial Member Accountant Member Pvv Sps Visakhapatnam Date 6 Th January 2010 Copy To 1 Agricultural Market Committee Undi Wg Distt 2 The Ito Ward 1 Anakapalle 3 The Ito Ward 1 Srikakulam 4 The Ito Ward 2 Bhimavaram 5 Agricultural Market Committee Chodavaram 6 Agricultural Market Committee Yellamanchili 7 Agricultural Market Committee Narsipatnam 8 Agricultural Market Committee Anakapalle 9 Agricultural Market Committee Ponduru 10 The Commissioner Of Income Tax Appeals Rajahmund Ry 11 The Commissioner Of Income Tax Rajahmundry 12 The Commissioner Of Income Tax Appeals Visakhapat Nam 13 The Commissioner Of Income Tax Visakhapatnam 14 The Departmental Representative I T A T Visak Hapatnam 15 Guard File By Order Senior Private Secretary Income Tax Appellate Tribunal Visakhapatnam