Agricultural Market Committee, Jangareddigudem V. ACIT, Eluru

ITA 110/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0123 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2009
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2003-2004
• Appeal Filed On: 03-03-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D S SUNDAR SINGH
• Assessee Lawyers: N O N E
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM (SMC) BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER ITA NOS.110 & 111/VIZAG/2009 ASSESSMENT YEARS : 2003-04 & 2004-05 AGRICULTURAL MARKET COMMITTEE, POLAVARAM, JANGAREDDIGUDEM ACIT, CIRCLE-1, ELURU (APPELLANT) VS. (RESPONDENT) PAN NO.AAKFA 9125C APPELLANT BY: N O N E RESPONDENT BY: SHRI D.S. SUNDAR SINGH, DR ORDER PER SUNIL KUMAR YADAV, JUDICIAL MEMBER:- THESE APPEALS, FILED BY THE ASSESSEE ARE DI RECTED AGAINST THE COMMON ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS), RAJAHMUNDRY AND THEY RELATE TO THE ASSESSMENT YEARS 2003-04 AND 200 4-05. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE ON T HE DATE OF HEARING. HENCE WE PROCEED TO DECIDE THE APPEALS ON MERITS. BOTH THE APPEALS ARE TIME BARRED. HAVING REGARD TO THE SUBMISSIONS MADE IN THE PETITI ON FILED BY THE ASSESSEE SEEKING CONDONATION, I CONDONE THE DELAY AND ADMIT THESE TWO APPEALS. 3. THOUGH THE ASSESSEE HAS RAISED SEVERAL GROUNDS, THE CORE ISSUE RELATES TO THE CLAIM OF EXEMPTION UNDER SECTION 10(26AAB) OF T HE ACT. 4. 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(26AAB) OF THE ACT. THE DECISION RENDERED IN THAT CASE IS EXTRACTED BEL OW: HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE ARE OF THE FIRM VIEW THAT THE INSERTION OF SUB-CLAUSE (26AAB) TO SE CTION 10 OF THE INCOME TAX ACT IS ESSENTIALLY INTENDED TO DECLARE T HE INTENTION OF THE 2 LEGISLATURE OF NOT TAXING THE INCOME OF AMCS CONSTI TUTED UNDER ANY LAW FOR THE TIME BEING IN FORCE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICULTURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OPERATION AND APPLICABLE EVEN FOR TH E PRIOR YEARS,. WE ORDER ACCORDINGLY. SINCE THE ISSUE OF EXEMPTION U/S 10(26AAB) STANDS S QUARELY COVERED BY THE AFORE-SAID DECISION, I REVERSE THE ORDERS PASSE D BY THE TAX AUTHORITIES AND HOLD THAT THE INCOME OF THE ASSESSEES HEREIN IS EXE MPT FROM LEVY OF TAX BY VIRTUE OF RETROSPECTIVE OPERATION OF SECTION 10(26AAB) OF THE ACT AND DIRECT THE ASSESSING OFFICER ACCORDINGLY. 5. IN VIEW OF OUR DECISION ON THE ABOVE SAID ISSUE, IT IS NOT NECESSARY TO CONSIDER VARIOUS OTHER ISSUES, WHICH WERE URGED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. 6. IN THE RESULT, THE APPEALS FILED BY THE ASSE SSEE ARE PARTLY ALLOWED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 12.08.09 SD/- (SUNIL KUMAR YADAV) JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 12 TH AUGUST, 2009 COPY TO 1. AGRICULTURAL MARKET COMMITTEE, POLAVARAM (HQR) J ANGAREDDIGUDEM, W.G. DIST. 2. ACIT, CIRCLE-1, ELURU 3. COMMISSIONER OF INCOME TAX (APPEALS), RAJAHMUNDR Y 4. COMMISSIONER OF INCOME TAX, RAJAHMUNDRY 5. THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., VISAK HAPATNAM 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM