Agricultural Market Committee, Mahabubnagar, Hyderabad v. ITO, Mahabubnagar

ITA 84/HYD/2011 | 2004-2005
Pronouncement Date: 29-09-2011 | Result: Allowed

Appeal Details

RSA Number 8422514 RSA 2011
Assessee PAN AAALA0938M
Bench Hyderabad
Appeal Number ITA 84/HYD/2011
Duration Of Justice 8 month(s) 11 day(s)
Appellant Agricultural Market Committee, Mahabubnagar, Hyderabad
Respondent ITO, Mahabubnagar
Appeal Type Income Tax Appeal
Pronouncement Date 29-09-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-09-2011
Date Of Final Hearing 22-09-2011
Next Hearing Date 22-09-2011
Assessment Year 2004-2005
Appeal Filed On 18-01-2011
Judgment Text
ITA NOS.83 & 84/H/2011 AGRICULTURAL MARKET COMMITTEE MEHABUB NAGAR . 1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NOS.83 & 84/HYD/2011 ASSESSMENT YEAR 2003-04 & 2004-05 M/S AGRICULTURAL MARKET COMMITTTEE MAHABHUBNAGAR (AAA LA 0938 M) VS ITO WARD I MAHABUBNAGAR APPELLANT RESPONDENT APPELLANT BY : SHRI CHAITANYA KUMAR RESPONDENT BY : SHRI T. DIWAKAR PRASAD DATE OF HEARING : 22.9.2011 DATE OF PRONOUNCEMENT: 29.9.2011 ORDER PER CHANDRA POOJARI: AM THESE TWO APPEALS PREFERRED BY THE ASSESSEE ARE DI RECTED AGAINST DIFFERENT ORDERS PASSED BY THE CIT(A)-V DAT ED 10.9.2010 AND PERTAINS TO THE ASSESSMENT YEARS 2003-04 AND 2 004-05. 2. THE ASSESSEE RAISED THE FOLLOWING COMMON GROUND S WHICH ARE COMMON IN NATURE: 1) THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE CIT(A) ERRED IN HOLDING THAT THE ASSESSING OFFI CER I.E. ITO WARD I MAHABUBNAGAR HAS JURISDICTION TO ASSESS THE ASSESSEE HEREIN. ITA NOS.83 & 84/H/2011 AGRICULTURAL MARKET COMMITTEE MEHABUB NAGAR . 2 3) THE CIT(A) ERRED IN CONFIRMING THE ORDER OF ASSESSM ENT ORDER BY THE ASSESSING OFFICER DETERMINING THE TOTAL INCOME AT RS.8 79 560/-. 4) THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AS SESSING OFFICER IN INITIATING THE PROCEEDINGS U/S 148 AND ISSUE OF NOTICE U/S 142(1) OF THE IT ACT. 5) THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AS SESSING OFFICER IS NOT ALLOWING EXEMPTION U/S 11 OF THE IT ACT. 6) THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AS SESSING OFFICER IN ASSESSING THE ASSESSEE HEREIN WITHOUT CONSIDERIN G THE FACT THAT THE FEES COLLECTED AND THE EXPENDITURE INCURRE D WAS IN ACCORDANCE WITGH THE DIRECTIONS OF THE GOVT. ON THE GOVERNMENTAL AUTHORITIES OR IN ACCORDANCE WITH THE PROVISIONS OF AP (AGRICULTURAL PRODUCE AND LIVE STOCK ) MARKETS ACT. THE CIT(A) OUGHT TO HAVE HELD THAT THE RECEIPT AND THE PAYMENT WITH REGARD TO THE MARKET COMMITTEE ARE IN ACCORDANCE WITH THE DIRECTIONS OF THE GOVT. AND THEREFORE THE RECEIPT DOES NOT REPRE SENT THE INCOME OF THE ASSESSEE HEREIN. 7) THE CIT(A) OUGHT TO HAVE SEEN THAT THE AMENDMENT BR OUGHT ON STATUTE BY FINANCE ACT 2008 INTRODUCING SECTION 10 (26AAB) WAS RETROACTIVE IN OPERATION AND APPLICABLE EVEN FOR TH E PRIOR YEARS. 8) THE CIT(A) ERRED IN REJECTING THE GROUND THAT THE E XPENDITURE INCURRED BY THE ASSESSEE IS ALLOWABLE AS A DEDUCTIO N IN VIEW OF THE PROVISIONS OF SECTION 36(1)(XII) OF THE IT ACT. 9) THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE AS SESSING OFFICER IN LEVYING INTEREST U/S 234A OF RS.1 62 976/- U/S 2 34B OF RS.1 78 530/- AND U/S 234C OF RS.62 536/-. ITA NOS.83 & 84/H/2011 AGRICULTURAL MARKET COMMITTEE MEHABUB NAGAR . 3 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIALS AVAILABLE ON RECORD WITH REFERENCE TO THE FIRST GROUND IN THESE TWO APPEALS. THOUGH THERE WAS DELAY IN FILIN G THESE APPEALS BY 53 DAYS THE DELAY WAS CAUSED ON BONA FIDE REASO NS AS EXPLAINED BY THE ASSESSEE IN THE PETITION FIELD FOR CONDONE OF DELAY. WE HAVE SATISFIED WITH REASONS EXPLAINED BY THE ASS ESSEE FOR THE DELAY. THE DELAY IS CONDONED AND THE APPEALS ARE A DMITTED. COMING TO THE FIRST GROUND THAT THE ASSESSING OFFIC ER HAS NO JURISDICTION OVER THE ASSESSEE IN THIS CASE WITH REGARD TO ALLOWABILITY OF EXEMPTION U/S 11 & 12 THIS TRIBUNA L VIDE ORDER DATED 24.11.2008 IN ITA NO.181/HYD/2008 DIRECTED T HE DIT(E) TO ADMIT THE APPLICATION FOR REGISTRATION U/S 12AA OF THE IT ACT. THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSE ES REGARDING EXEMPTION U/S 11 ON THE REASON THAT THE APPLICATION FOR REGISTRATION U/S 12AA WERE REJECTED BY DIT(EXEMPTIO NS) HYDERABAD AND AT THE TIME OF PASSING THE ASSESSMENT ORDERS FOR THESE ASSESSMENT YEARS THERE WAS NO VALID REGISTR ATION U/S 12AA GRANTED TO THE ASSESSEE. IN OUR OPINION AFTER THE ORDER OF THE TRIBUNAL THE ASSESSING OFFICER HAS TO SEE WHETHER THERE IS VALID REGISTRATION U/S 12AA OF THE IT ACT IN THE RELEVANT ASSESSMENT YEARS. AS SUCH WE FEEL IT APPROPRIATE TO SET ASID E THE ISSUE RELATING TO THE AVAILABILITY REGISTRATION U/S 12AA AND EXEMP TION U/S 11 FOR FRESH CONSIDERATION TO THE FILE OF CIT(A). THE CIT (A) IS DIRECTED TO DECIDE THE ISSUE AFTER GIVING OPPORTUNITY OF HEARI NG TO THE ASSESSEE. ACCORDINGLY THE ORDERS OF THE LOWER AUT HORITIES ARE SET ASIDE AND THE MATTER IS REMITTED BACK TO THE CIT(A) TO EXAMINE WHETHER THERE IS VALID REGISTRATION U/S 12AA OF TH E INCOME TAX ACT FOR THE ASSESSMENT YEARS UNDER CONSIDERATION A ND GIVE FINDINGS ON THE ISSUE RELATING TO JURISDICTION OF THE ASSESSING ITA NOS.83 & 84/H/2011 AGRICULTURAL MARKET COMMITTEE MEHABUB NAGAR . 4 OFFICER OVER THE ASSESSEE IN THESE ASSESSMENT YEARS . IT NEEDLESS TO SAY THAT IN CASE THE ASSESSEE IS GRANTED WITH REGIS TRATION U/S 12AA THE JURISDICTION OVER THE ASSESSEE WILL BE WI TH CONCERNED ASSESSING OFFICER WHO IS ASSESSING THESE KIND OF AS SESSEES I.E. TRUST/CHARITABLE INSTITUTIONS. ACCORDINGLY APPE ALS ARE ALLOWED FOR STATISTICAL PURPOSE. AT THIS STAGE WE REFRAI N FROM OURSELVES GOING INTO OTHER GROUNDS OF APPEALS RAISED BY THE A SSESSEE AS THE PRIMARY ISSUE REGARDING JURISDICTION IS TO BE DECID ED IN THE LIGHT OF THE ORDER OF THE TRIBUNAL CITED SUPRA. 4. IN THE RESULT ASSESSEES APPEALS ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT 29.9.2011 SD/- SD/- (G.C. GUPTA) (CHANDRA POOJARI) VICE PRESIDENT ACCOUNTANT MEMBER DATED THE 29 TH SEPT. 2011 COPY FORWARDED TO: 1. SHRI S. RAMA RAO ADVOCATE FLAT NO.102 SHRIYA S ENCLAVE 3-6-643 ST. NO.9 HIMAYAT NAGAR HYD.29 M/S AGRICULTURAL MARKET COMMITTEE MAHABUBNAGAR. 2. THE ITO W ARD - I MAHABHUBNAGAR 3. CIT(A) V HYDERABAD 4. THE CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD.