Agricultural Market Committee, Narayanpet, Mahabubnagar, Hyderabad V. ITO, Ward-1, Mahabubnagar, Mahabubnagar

ITA 1108/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 98761 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 29-10-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 24-08-2015
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Assessee Lawyers: S RAMA RAO
• Keywords: Reasonable cause
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. ASST. YEAR APPELLANT RESPONDENT 1107/H YD /15 2005 - 06 AGRICULTURAL MARKET COMMITTEE, NARAYANPET, MAHABUBNAGAR DIST [PAN: AABTA2586L] INCOME TAX OFFICER, WARD-I, MAHABUBNAGAR 1108/HYD /15 2006 - 07 1109/HYD /15 2007 - 08 FOR ASSESSEE : SHRI S. RAMA RAO, AR FOR REVENUE : SHRI M. SITA RAM, DR DATE OF HEARING : 29 - 1 0 - 201 5 DATE OF PRONOUNCE MENT : 04 - 1 2 - 2015 O R D E R PER B. RAMAKOTAIAH, A.M. : THESE THREE APPEALS ARE BY ASSESSEE FOR AYS. 2005- 06 TO 2007-08 AGAINST THE ORDERS OF THE COMMISSIONER OF I NCOME TAX (APPEALS)-4, HYDERABAD DATED 30-04-2015. SINCE COM MON ISSUES ARE INVOLVED, THESE THREE APPEALS ARE HEARD TOGETHE R AND DECIDED BY THIS COMMON ORDER. 2. THESE APPEALS ARE FILED WITH A DELAY OF THIRTEEN DAYS WITH THE CONDONATION PETITIONS. IT WAS SUBMITTED THAT THE LD . COUNSEL WHO WAS TO PREPARE THE APPEAL PAPERS WAS INDISPOSED AND COULD NOT ATTEND THE OFFICE. HENCE, THE DELAY IN PREPARING T HE APPEALS AND I.T.A. NOS. 1107, 1108 & 1109/HYD/2015 AGRICULTURAL MARKET COMMITTEE :- 2 -: FILING THE SAME BEFORE THE ITAT. CONSIDERING THE P RAYER, AND FACTS AS PLACED ON RECORD, WE ARE OF THE OPINION THAT THE RE IS SUFFICIENT AND REASONABLE CAUSE FOR CONDONING THE DELAY. ACCO RDINGLY, THE DELAY OF 13 DAYS IS CONDONED AND APPEALS ARE TAKEN ON RECORD FOR HEARING. 3. ASSESSEE IS AN AGRICULTURAL MARKET COMMITTEE (AM C) ESTABLISHED UNDER ANDHRA PRADESH (AGRICULTURAL PROD UCE AND LIVE STOCK) MARKETS ACT, 1966. THE INCOME OF THE AMC WA S EXEMPT U/S. 10(20) OF THE INCOME TAX ACT [ACT] UPTO 2002-0 3. THE INCOMES WERE AGAIN EXEMPT BY VIRTUE OF SECTION 10(26AAB) OF THE ACT W.E.F. 01-04-2008. IN THE INTERVENING YEARS, ASSESSEES I NCOMES WERE BROUGHT TO TAX BY THE AUTHORITIES. ASSESSEE HAS AP PLIED FOR REGISTRATION U/S. 12A OF THE ACT BEFORE THE DIT (EX EMPTIONS), HYDERABAD FOR CLAIMING EXEMPTION OF THE INCOMES EAR NED. THE SAID APPLICATION WAS REJECTED VIDE ORDERS DT. 26-11-2007 . ON APPEAL, THE ITAT A BENCH, HYDERABAD VIDE ORDER IN ITA NO. 221 /HYD/2008 DT. 15-04-2008 DIRECTED THE DIT (EXEMPTIONS) TO GRANT R EGISTRATION U/S. 12A OF THE ACT. THE LD. DIT (EXEMPTIONS) VIDE ORDER DT. 26-05-2008, GRANTED REGISTRATION W.E.F. 01-04-2 007. ON FURTHER APPEAL FILED SEEKING REGISTRATION FOR THE EARLIER P ERIOD, THE ITAT B BENCH OF HYDERABD IN ITA NO. 353/HYD/2010 DT. 09-08 -2010, DISMISSED THE APPEAL FOR NON-APPEARANCE BY ASSESSEE . ASSESSEE FILED A MISCELLANEOUS APPLICATION ON 04-08-2011 FOR RECALL OF THE ORDER. THE SAME WAS POSTED AGAIN ON 10-01-2012 AND WAS AGAIN DISMISSED AS NONE APPEARED ON BEHALF OF ASSESSEE. THEREFORE, ASSESSEE, AS OF NOW WAS GRANTED AND HAVING REGISTRA TION W.E.F. 01-04-2007, THEREFORE, ELIGIBLE FOR EXEMPTION U/S. 11 OF THE ACT FROM THAT DATE RELEVANT FOR AY. 2008-09 ONWARDS. I N THE IMPUGNED ASSESSMENT YEARS, SINCE ASSESSEE DID NOT HAVE ANY R EGISTRATION FOR I.T.A. NOS. 1107, 1108 & 1109/HYD/2015 AGRICULTURAL MARKET COMMITTEE :- 3 -: CLAIMING EXEMPTION U/S. 11, AO INITIATING PROCEEDIN GS U/S. 147, ASSESSED THE INCOMES BY DISALLOWING CERTAIN CLAIMS. BEFORE THE LD. CIT(A), ASSESSEE DID NOT CONTEST THE DISALLOWANCES PER SE BUT CLAIMED EXEMPTION OF THE INCOMES IN THE IMPUGNED YE ARS STATING THAT ASSESSEES INCOME IS EXEMPT U/S. 10(26AAB). L D. CIT(A) FOLLOWING THE JUDGMENT OF HON'BLE DELHI HIGH COURT IN THE CASE OF AGRICULTURAL PRODUCE MARKET COMMITTEE, AZADPUR VS. CIT IN ITA NO. 749/2006 DT. 02-06-2006 AND DECISION OF THE HON 'BLE SUPREME COURT IN THE CASE OF AGRICULTURAL PRODUCE MARKET CO MMITTEE ARISING OUT OF SLP(C) NO. 6757 OF 2007 AND JUDGMENT OF JURISDICTIONAL HIGH COURT, CONFIRMED THE ACTION OF AO BY STATING AS UNDER: 6. THE MATERIAL PLACED ON RECORD IS CONSIDERED. THE EXEMPTION CLAIMED BY THE ASSESSEE U/S. 10(26AAB) IS NOT ALLOWABLE AS PER THE ORDER OF THE HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF AP STATE SEED CERTIFICATION AGENCY AND OTHERS IN WP NO. 31640 OF 2011, WHERE IN IT WAS HELD THAT ACTIVITY OF AGRICUL TURAL MARKET COMMITTEES DOES NOT COME UNDER THE PURVIEW OF CHAR ITABLE PURPOSE. ACCORDINGLY, IT IS HELD THAT THE ASSESSE E IS NOT TO BE ELIGIBLE FOR EXEMPTION U/S. 10(26AAB). HENCE, THE GROUND OF APPEAL ARE DISMISSED. 4. AFTER CONSIDERING THE RIVAL CONTENTIONS AND PERU SING THE WRITTEN SUBMISSIONS MADE BY ASSESSEE AND DOCUMENTS PLACED ON RECORD, WE ARE OF THE OPINION THAT THE ORDERS OF CI T(A) ARE JUSTIFIED ON THE FACTS OF THE CASE. AS FAR AS EXEMPTION U/S. 11 IS CONCERNED, SINCE ASSESSEES REGISTRATION WAS W.E.F. 01-04-2007 , FOR THE IMPUGNED YEARS ASSESSEE CANNOT CLAIM THE EXEMPTION, UNLESS THE REGISTRATION FOR THE EARLIER PERIOD WAS GRANTED BY ANY JUDICIAL ORDER IN ASSESSEES OWN CASE. ASSESSEE ALSO CANNOT CLAIM EXEMPTION U/S. 10(26AAB) AS THE SAID PROVISIONS ARE APPLICABLE W.E .F. 01-04-2009. IN VIEW OF THE ABOVE, ASSESSEES CONTENTIONS THAT I T IS ELIGIBLE FOR DEDUCTION U/S. 11/SECTION 10(26AAB) CANNOT BE CONSI DERED FOR THE I.T.A. NOS. 1107, 1108 & 1109/HYD/2015 AGRICULTURAL MARKET COMMITTEE :- 4 -: IMPUGNED ASSESSMENT YEARS. AS ALREADY STATED, ASSE SSEE HAS NOT QUESTIONED THE VARIOUS DISALLOWANCES MADE BY THE AO IN THE ORDERS. THEREFORE, WE DO NOT SEE ANY REASON TO INT ERFERE WITH THE ORDERS OF THE LD. CIT(A). THE GROUNDS RAISED BY AS SESSEE IN THIS REGARD ARE ACCORDINGLY REJECTED. 5. IN THE RESULT, ALL THE THREE APPEALS ARE DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 TH DECEMBER, 2015 SD/- SD/- (D. MANMOHAN) (B. RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBE R HYDERABAD, DATED 04 TH DECEMBER, 2015 TNMM COPY TO : 1. AGRICULTURAL MARKET COMMITTEE, NARAYANPET, MAHABUBNAGAR DIST., C/O. SRI S. RAMA RAO, ADVOCATE , FLAT NO. 102, SHRIYAS ELEGANCE, 3-6-643, STREET NO . 9, HIMAYATNAGAR, HYDERABAD . 2 . INCOME TAX OFFICER, WARD - I, MAHABUBNAGAR. 3. CIT (APPEALS)-4, HYDERABAD. 4. CIT-4, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6 . GUARD FILE.