The ACIT, Circle-2(1), Guntur v. M/s Agricultural Market Committee, Chilakaluripeta

ITA 332/VIZ/2010 | 2007-2008
Pronouncement Date: 04-08-2010 | Result: Dismissed

Appeal Details

RSA Number 33225314 RSA 2010
Bench Visakhapatnam
Appeal Number ITA 332/VIZ/2010
Duration Of Justice 2 month(s) 1 day(s)
Appellant The ACIT, Circle-2(1), Guntur
Respondent M/s Agricultural Market Committee, Chilakaluripeta
Appeal Type Income Tax Appeal
Pronouncement Date 04-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 04-08-2010
Assessment Year 2007-2008
Appeal Filed On 02-06-2010
Judgment Text
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 ITA NO.330/VIZAG/2010 ASSESSMENT YEAR: 2007-08 ACIT CIRCLE-2(1) VS. AGRICULTURAL MARKET COMMITTE E GUNTUR NARSARAOPETA (APPELLANT) (PAN NO.AAALA 0409K D)) (RESPONDENT ITA NO.331/VIZAG/2010 ASSESSMENT YEAR: 2007-08 ACIT CIRCLE-2(1) VS. AGRICULTURAL MARKET COMMITTE E GUNTUR MACHERLA (APPELLANT) (PAN NO.AAALA 0748 D)) (RESPONDENT ITA NO.332VIZAG/2010 ASSESSMENT YEAR: 2007-08 ACIT CIRCLE-2(1) VS. AGRICULTURAL MARKET COMMITTE E GUNTUR CHILKALURIPETA (APPELLANT) (PAN NO.AAALA 0344H) (RESPONDENT) APPELLANT BY : SHRI SUBRATA SARKAR CIT-DR RESPONDENTS BY: SHRI CH SRINIVASA RAO & SHRI Y. SUR YA CHANDRA RAO CAS ORDER PER BENCH: THESE APPEALS FILED AT THE INSTANCE OF THE REVENUE ARE DIRECTED AGAINST THE ORDER OF THE LD CIT (A) GUNTUR AND THEY RELATE TO THE ASSESSMENT YEAR 2007-08. SINCE THE ISSUES URGED IN THESE THREE APPEALS ARE I DENTICAL IN NATURE THEY WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS CO MMON ORDER. IN RESPECT OF APPEAL NUMBERED AS ITA NO.332/VIZAG/2010 NONE APPE ARED ON BEHALF OF THE ASSESSEE AND HENCE WE PROCEED TO DISPOSE IT OF EX-P ARTE QUA THE ASSESSEE. PAGE 2 OF 3 2. THE SOLITARY ISSUE URGED IN THIS APPEAL IS WHETH ER THE LD CIT (A) IS RIGHT IN HOLDING THAT THE SECTION 10(26AAB) IS RETROACTIVE I N 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. FOR THE SAKE OF CONVENIENCE WE EXTRACT THE OPERATIVE PART OF THE ORDER OF THE LD CIT (A). 5. I HAVE CONSIDERED THE FACTS OF THIS CASE AND TH E SUBMISSIONS MADE. IN THE CONSOLIDATED ORDER OF THE INCOME TAX A PPELLATE TRIBUNAL VIZAG. BENCH DATED 28-11-2008 ON 24 APPEA LS RELATING TO A.YS 2003-04 & 2004-05 OF VARIOUS AMCS THE INCOM E TAX APPELLATE TRIBUNAL HAS HELD AS BELOW: WE ARE LEFT FOR CONSIDERATION WITH ONLY TWO ISSUES (I) WHETHER INSERTION OF SUB-CLAUSE (26AAB) OF SECTION 10 OF THE INCOME TAX ACT WAS A DECLARATORY ACT TO REMOVE DOUBTS EXISTING WITH REGARD TO THE EFFECT OF PRE-EX ISTING STATUTE AND HENCE IT IS RETROSPECTIVE IN OPERATION; AND (II) WHETHER THE IMPUGNED EXPENDITURE IN THE FORM OF CONTRIBUTION TO NEERU MEERU ETC. AND THE MANDATO RY PAYMENT TO THE CENTRAL MARKET FUND UNDER SEC.16/26 OF THE MARKET COMMITTEE ACT CAN BE CONSIDERED AS AMOUN TS INCURRED FOR THE OBJECT OF THE AMCS UNDER SEC.36(1) (XII) OF THE INCOME TAX ACT OR WHETHER THE INCOME AS SUCH CAN BE TREATED AS FALLING OUTSIDE THE KEN OF TAXATION O N THE PRINCIPLE AND DIVERSION OF INCOME BY OVERRIDING TIT LE. SINCE WE ARE OF THE VIEW THAT THE PROVISIONS OF SEC.10(26 AAB) OF THE INCOME TAX ACT ARE INTENDED TO BE RETROACTIV E IN OPERATION HAVING BEEN INSERTED IN THE STATUTE BOOK WITH A VIEW TO CLARIFY THE POSITION OF AMCS EVER UNDER PRE - EXISTING STATUE AND THE FINANCE MINISTER HAVING SPE CIFICALLY MENTIONED WHILE REPLYING TO THE DEBATE IN THE LOK SABHA THAT THERE IS NO INTENTION TO TAX THE AMCS THE ENT IRE FEE/INCOME COLLECTED/RECEIVED HAS TO BE CONSIDERED AS EXEMPT FROM THE LEVY OF TAX IN WHICH EVENT THE DECI SION ON THE ANCILLARY ISSUE IS OF ACADEMIC IMPORTANCE AN D THUS NEED NOT BE GONE INTO. 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 SECTION 10(26AAB) OF THE ACT. THE DECISION RENDERED IN THA T 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 PAGE 3 OF 3 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. 5. SINCE THE LD CIT (A) HAS FOLLOWED THE DECISI ON RENDERED BY THIS BENCH WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. 6. IN THE RESULT ALL THE APPEALS FILED BY THE REVENUE ARE DISMISSED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 4 TH AUGUST 2010. SD/- SD/- (B R BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PVV/SPS VISAKHAPATNAM DATE:04-08-2010 COPY TO 1. THE ACIT CIRCLE-2(1) 4 TH FLOOR RAJKAMAL COMPLEX LAKSHMIPURAM MAIN ROAD GUNTUR 2. THE AGRICULTURAL MARKET COMMITTEE NARSARAOPETA 3. THE AGRICULTURAL MARKET COMMITTEE MACHERLA 4. THE AGRICULTURAL MARKET COMMITTEE CHILAKALURIPETA 5. THE COMMISSIONER OF INCOME-TAX (APPEALS) GUNTUR 4. THE COMMISSIONER OF INCOME TAX GUNTUR 5. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISA KHAPATNAM 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM