ITO, Ongole v. Agricultural Market Committee, Addanki, Prakasam

ITA 905/HYD/2010 | misc
Pronouncement Date: 09-12-2010

Appeal Details

RSA Number 90522514 RSA 2010
Assessee PAN AAALA0248C
Bench Hyderabad
Appeal Number ITA 905/HYD/2010
Duration Of Justice 40 year(s) 11 month(s) 7 day(s)
Appellant ITO, Ongole
Respondent Agricultural Market Committee, Addanki, Prakasam
Appeal Type Income Tax Appeal
Pronouncement Date 09-12-2010
Appeal Filed By Department
Assessment Year misc
Appeal Filed On 01-01-1970
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S.GANESAN JUDICIAL M EMBER AND SHRI AKBER BASHA ACCOUNTANT MEM BER ITA NO. ASSESSMENT YEAR APPELLANT RESPONDENT 905/HYD/2010 2006-07 INCOME-TAX OFFICER WARD-1 ONGOLE. AGRICULTURAL MARKET COMMITTEE ADDANKI ( PAN-AAALA 0248 C) 906/HYD/2010 2006-07 INCOME-TAX OFFICER WARD-2 ONGOLE. AGRICULTURAL MARKET COMMITTEE DARSI ( PAN-AAALA 0243 R) 907/HYD/2010 2006-07 INCOME-TAX OFFICER WARD-1 ONGOLE. AGRICULTURAL MARKET COMMITTEE MARTUR ( PAN-AAALA 0238 L) 908/HYD/2010 2006-07 INCOME-TAX OFFICER WARD-2 ONGOLE. AGRICULTURAL MARKET COMMITTEE CUMBUM ( PAN-AAALA 0244 J) 909/HYD/2010 2006-07 INCOME-TAX OFFICER WARD-2 ONGOLE. AGRICULTURAL MARKET COMMITTEE GIDDALUR ( PAN-AAALA 0241 P) APPELLANTS BY : SHRI K.E.SUNIL BABU RESPONDENT BY : NONE ITA.NO.905 TO 909/HY D/2010 AGRICULTURAL MARKET COMMITTEE ADDANKI AND 4 OTHERS 2 O R D E R PER BENCH: THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST SIM ILAR BUT SEPARATE ORDERS OF THE CIT(A) GUNTUR DATED 26.3.2010 FOR THE ASSESSMENT YEAR 2006-07. SINCE COMMON AND IDENTICAL ISSUES AR E INVOLVED IN THESE APPEALS FILED BY THE REVENUE THESE ARE HEARD TOGETHER AND DISPOSED OFF BY THIS COMBINED ORDER FOR T HE SAKE OF CONVENIENCE. 2. DESPITE NOTICE AT THE TIME OF HEARING OF APPEALS BY THIS TRIBUNAL ON 9.12.2010 NONE APPEARED ON BEHALF OF T HE ASSESSEES. THERE IS NOT EVEN AN ADJOURNMENT PETITION RECEIVED FR OM THE ASSESSEES. WE ACCORDINGLY PROCEED TO DISPOSE OFF THESE APPE ALS OF THE REVENUE EX-PARTE-QUA THE ASSESSEE. 3. EFFECTIVE GROUNDS OF THE REVENUE COMMON IN ALL T HESE APPEALS READ AS FOLLOWS- '1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH IN LA W AND IN FACTS OF THE CASE. 2. THE CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT T HE PROVISIONS OF SECTION 10(26AAB) HAS BEEN INTRODUCED BY THE FINANCE ACT W.E.F. 01.04.2009 AND THERE IS NO SPECI FIC MENTION IN THE FINANCE ACT THAT THE NEWLY INTRODUCED SECTIO N HAS RETROSPECTIVE EFFECT. 3. THE CIT(A) HAS NOT CONSIDERED THE DECISION OF THE H ON'BLE SUPREM E COURT IN THE CASE OF AGRICULTURAL PRODUCE MARKET COMMITTEE NARELA VS. CIT 305 ITR 1(2008) WHEREIN I T WAS HELD THAT AFTER INSERTION OF EXPLANATION TO SECTION 10(20) BY THE FINANCE ACT 2002 W.E.F.01/04/2003 THE AMC IS N EITHER A MUNICIPAL COM MITTEE NOR A DISTRICT BOARD AND IT IS NOT ENTITLED TO EXEMPTION UNDER SECTION 10(20) OF THE I.T.ACT. 4. THE LEARNED CIT(A) OUGHT NOT TO HAVE HELD THAT INC OME OF THE AMCS ARE EXEMPT FOR THE ASST. YR. 2007-08 FOLLOWING THE ITA.NO.905 TO 909/HY D/2010 AGRICULTURAL MARKET COMMITTEE ADDANKI AND 4 OTHERS 3 DECISION OF THE I.TAT. VIZAG BENCH KEEPING IN VIEW OF THE VARIOUS DECISIONS OF THE HON'BLE APEX COURT IN RESP ECT OF ISSUE OF EFFECT OF AMENDMENTS TO THE PROVISIONS OF THE AC T/INSERTION OF NEW PROVISIONS: (A) HINTENDER VISHNU THAKUR VS. STATE OF MAHARASHT RA (1994) 4 SC 602) (B) SMT.DAYAWATI V/S. INDERJIT (AIR 1966 SC 1423 I N PARA 10) (C) GARIKAPATI VEERAIAH V/S N.SUBBAIAH CHOWADHARY (AIR 157 SC 540). ' 3. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESEN TATIVE AND PERUSED THE IMPUGNED ORDERS OF THE LOWER AUTHORIT IES AND OTHER MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE ISSUES R AISED IN THESE APPEALS ARE SQUARELY COVERED IN FAVOUR OF THE REVENUE BY THE ORDER OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF A GRICULTURE MARKET COMMITTEE MADHIRA AND OTHERS IN ITA NO.542/HYD/2009 AND OTHERS DATED 26.3.2010 WHEREIN IT WAS HELD THAT THE ASSESSEES A RE NOT ELIGIBLE FOR EXEMPTION U/S 10(26AAB) OF THE ACT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION WHEREIN THEY HAVE FOLLOWED THE JUDGEMENT OF THE APEX COURT IN AGRICULTURAL PRODUCE MARKET COM MITTEE NARELA VS. CIT & OTHERS (305 ITR 1) (SC). FOR THE DETAILED REASONING GIVEN IN OUR ORDER DATED 26.3.2010 IN THE CASE OF AGRICULTUAL M ARKET COMMITTEE MADHIRA AND OTHERS WE HOLD THAT THE ASSE SSEE TRUSTS ARE NOT ELIGIBLE FOR EXEMPTION U/S 10(26AAB) OF THE ACT F OR THE ASSESSMENT YEAR 2006-07. ACCORDINGLY IMPUGNED ORDERS OF THE CI T(A) ARE SET ASIDE AND THE ORDERS OF ASSESSMENT OF THE ASSESSING OFFICER A RE RESTORED. CONSEQUENTLY GROUNDS OF THE REVENUE IN TH ESE APPEALS ARE ALLOWED. ITA.NO.905 TO 909/HY D/2010 AGRICULTURAL MARKET COMMITTEE ADDANKI AND 4 OTHERS 4 4. IN THE RESULT ALL THE FIVE APPEALS OF THE REVEN UE ARE ALLOWED. ORDER PRONOUNCED IN THE COURT ON 9TH DECEMBER 2010. SD/- S D/- (N.R.S.GANESAN) (AKBER BASHA) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 9TH DECEMBER 2010 COPY FORWARDED TO: 1. AGRICULTURAL MARKET COMMITTEE ADDANKI PRAKASAM D ISTRICT. 2. AGRICULTURAL MARKET COMMITTEE DARSI PRAKASAM DIST RICT. 3. AGRICULTURAL MARKET COMMITTEE MARTUR PRAKASAM DI STRICT. 4. AGRICULTURAL MARKET COMMITTEE CUMBUM PRAKASAM DI STRICT. 5. AGRICULTURAL MARKET COMMITTEE GIDDALUR PRAKASAM DISTRICT. 6. INCOME-TAX OFFICER WARD-1 ONGOLE 7. INCOME-TAX OFFICER WARD-2 ONGOLE 8. COMMISSIONER OF INCOME-TAX (APPEALS) GUNTUR. 9. COMMISSIONER OF INCOME-TAX GUNTUR. 10. DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD. B.V.S.