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

ITA 485/VIZ/2009 | 2004-2005
Pronouncement Date: 21-01-2010 | Result: Dismissed

Appeal Details

RSA Number 48525314 RSA 2009
Assessee PAN AAALA0418L
Bench Visakhapatnam
Appeal Number ITA 485/VIZ/2009
Duration Of Justice 3 month(s) 9 day(s)
Appellant The DCIT, Circle-2(1), Guntur
Respondent M/s Agricultural Market Committee, Narasaraopeta
Appeal Type Income Tax Appeal
Pronouncement Date 21-01-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 21-01-2010
Assessment Year 2004-2005
Appeal Filed On 12-10-2009
Judgment Text
PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 485/VIZAG/2009 ASSESSMENT YEAR: 2004-05 DCIT CIRCLE-2(1) GUNTUR VS. AGRICULTURAL MARKET COMMITTEE NARASARAOPETA (APPELLANT) (RESPONDENT) PAN NO: AALA 0409 K ITA NO. 488/VIZAG/2009 ASSESSMENT YEAR: 2006-07 ITO WARD-4(1) VISAKHAPATNAM VS. AGRICULTURAL MARKET COMMITTEE VISAKHAPATNAM (APPELLANT) (RESPONDENT) . PAN NO: AAALA 0418 L APPELLANT BY: SHRI G.S.S. GOPINATH DR RESPONDENT BY: SHRI G.V.N. HARI CA ORDER PER SHRI B R BASKARAN ACCOUNTANT MEMBER: THESE TWO APPEALS FILED AT THE INSTANCE OF THE REV ENUE ARE DIRECTED AGAINST THE ORDERS PASSED BY THE LD CIT(A) IN THE HANDS OF THE EACH ASSESSEE. SINCE THE ISSUES CONTESTED IN THESE TWO APPEALS ARE IDENTICAL AND FU RTHER SINCE BOTH THE APPEALS WERE HEARD TOGETHER WE FIND IT CONVENIENT TO DISPOSE TH EM OF BY THIS COMMON ORDER. BOTH THE CIT (A)S HAVE HELD THAT SEC.26AAB THOUGH INTRO DUCED W.E.F. 1.4.2009 HAS GOT RETROSPECTIVE APPLICATION AND ACCORDINGLY HELD THAT THE INCOME OF THESE ASSESSEES ARE EXEMPT U/S 10(26AAB) OF THE ACT. IT MAY BE NOTED T HAT THE APPEAL IN THE CASE OF AMC NARASARAOPET RELATES TO THE ASSESSMENT YEARS 2 004-05 AND THE APPEAL IN THE CASE OF AMC VISAKHAPATNAM RELATES TO THE ASSESSMEN T YEAR 2006-07. AGGRIEVED BY THE ORDER OF THE LD CIT (A)S THE REVENUE HAS PREFE RRED THESE APPEALS BEFORE US. PAGE 2 OF 3 2. NONE APPEARED ON BEHALF OF THE ASSESSEE IN CASE OF ITA NO.488/VIZAG/2009 THOUGH THE NOTICE OF HEARING WAS SERVED UPON THE AS SESSEE. HENCE WE PROCEED TO DECIDE THE APPEAL EX-PARTE QUA THE ASSESSEE. 3. WE HAVE HEARD THE LD AR OF ASSESSEE IN ITA NO.48 5/VIZAG/2009 AND ALSO THE LD DR. WE NOTICE THAT BOTH THE LD CIT (A)S HAVE FOL LOWED THE ORDER DATED 28.11.2008 PASSED BY THIS TRIBUNAL IN ITA NO.90/VIZAG/2007 & O THER GROUPS. FOR THE SAKE OF CONVENIENCE WE EXTRACT BELOW THE OBSERVATIONS MADE BY THE LD CIT (A) IN THE CASE OF AMC NARASARAOPET IN ITA NO.485/VIZAG/2009. 4. DURING THE APPELLATE PROCEEDINGS THE APPELLANT WAS REPRESENTED BY SHRI T. KRISHNAMURTHY. THE AUTHORIZED REPRESENTATIV E RELIED ON THE CONSOLIDATED ORDER OF THE ITAT VIZAG.BENCH DATED 2 8.11.2008 FOR THE ASSESSMENT YEAR 2003-04 IN ITA NO.90/VIZAG/2007. IN THEIR CONSOLIDATED ORDER ON 24 APPEALS RELATING TO A.YS 2003-04 & 2004 -05 OF VARIOUS AMCS THE ITAT HAD HELD AS BELOW: WE ARE LEFT FOR CONSIDERATION WITH ONLY TWO ISSUES (I) WHETHER INSERTION OF SUB-CLAUSE (26AAB) OF SECTION 10 OF TH E INCOME TAX ACT WAS A DECLARATORY ACT TO REMOVE DOUBTS EXIS TING WITH REGARD TO THE EFFECT OF PRE-EXISTING STATUTE AND HE NCE IT IS RETROSPECTIVE IN OPERATION; AND (II) WHETHER THE IM PUGNED EXPENDITURE IN THE FORM OF CONTRIBUTION TO NEERU M EERU ETC. AND THE MANDATORY PAYMENT TO THE CENTRAL MARKET FUN D UNDER SEC 16/26 OF THE MARKET COMMITTEE ACT CAN BE CONSIDERED AS AMOUNTS INCURRED FOR THE OBJECT OF TH E AMCS UNDER SEC. 36(1) (XII) OF THE INCOME TAX ACT OR WHE THER THE INCOME AS SUCH CAN BE TREATED AS FALLING OUTSIDE TH E KEN OF TAXATION ON THE PRINCIPLE AND DIVERSION OF INCOME B Y OVERRIDING TITLE. SINCE WE ARE OF THE VIEW THAT THE PROVISION OF SEC. 10(26AAB) 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 SPECIFICALL Y 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 AND T HUS NEED NOT BE GONE INTO. PAGE 3 OF 3 5. FOLLOWING THE ITATS DECISION THAT SEC.10(26AAB ) HAS RETROSPECTIVE APPLICATION THE INCOME OF THE AMCS IS HELD TO BE E XEMPT AND THE APPEAL IS ALLOWED. 4. IT CAN BE NOTICED THAT BOTH THE LD CIT (A)S HAVE FOLLOWED THE ORDERS PASSED BY THIS BENCH IN DECIDING THE ISSUE IN FAVOUR OF THE ASSESS EE. IT WAS SUBMITTED BY LD AR THAT THE FACTS OF THE PRESENT CASE ARE IDENTICAL WITH TH E FACTS OF THE CASES DECIDED IN ITA NO.90/VIZAG/2007. SINCE THE ORDERS PASSED BY LD CI T(A)S ARE CONSISTENT WITH THE VIEW TAKEN BY THIS BENCH WE UPHOLD THE ORDERS PASS ED BY THE LD CIT (A). 5. IN THE RESULT THE APPEALS OF THE REVENUE ARE DISM ISSED. PRONOUNCED IN THE OPEN COURT ON 21-01-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM 21 ST JANUARY 2010. COPY TO 1 THE DCIT CIRCLE-2(1) 4 TH FLOOR RAJKAMAL COMPLEX LAKSHMIPURAM MAIN ROAD GUNTUR 2 THE ITO WARD-4(1) VISAKHAPATNAM 3 AGRICULTURAL MARKET COMMITTEE NARASARAOPET GUNT UR DISTRICT 4 AGRICULTURAL MARKET COMMITTEE VISAKHAPATNAM 5 THE CIT (A) GUNTUR 6 THE CIT GUNTUR 7 THE CIT (A) VISAKHAPATNAM 8 THE CIT-2 VISAKHAPATNAM BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM