Krishi Utpanna Bazar Samiti, Jamner V. ITO, Ward 2(3), Jalgaon, Jalgaon

ITA 1448/PUN/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 49817 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 5 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 21-12-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY DAMLE
• Assessee Lawyers: SUNIL PATHAK
• Keywords: Business income
• Section: 12A; 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI I.C. SUDHIR JUDICIAL MEMBER AND SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER I.T.A. NO. 1448 AND 1449/PN/2009 A.Y. 2003-04 AND 2006-07 KRISHI UTPANNA BAZAR SAMITI JALGAON ROAD, JAMNER 424 206 DIST. JALGAON PAN AAALA 0828 L APPELLANT VS. I.T.O. WARD 2(3) JALGAON RESPONDENT APPELLANT BY: SHRI SUNIL PATHAK RESPONDENT BY: SHRI ABHAY DAMLE ORDER PER I.C. SUDHIR, JM IN THESE APPEALS, THE ASSESSEE HAS QUESTIONED THE F IRST APPELLATE ORDERS ON THE FOLLOWING GROUNDS: 1) ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A D IN LAW, THE LEARNED CIT(A) ERRED IN SUSTAINING THE ADDITION MAD E BY THE LEARNED ASSESSING OFFICER WHICH AROSE OUT OF TAXIN G THE INCOME OF APMC BY DENYING IT THE BENEFIT OF SECTION 10(20) AND FURTHER OF SECTION 11 OF THE ACT WITHOUT APPREC IATING SUBMISSIONS AND DOCUMENTS PLACED ON RECORD. WITHOUT PREJUDICE 2) TAXING THE INCOME OF PAMC AS BUSINESS INCOME RS. 47,46,126 FOR A.Y. 2003-04 AND RS. 15,76,011/- FOR A.Y. 2006- 07, THE LEARNED CIT(A) ERRED IN TAXING THE INCOME OF AP MC WITHOUT APPRECIATING THE SUBMISSIONS AND DOCUMENTS PLACED ON RECORD WHICH PROVES THAT APMC IS NOT CARRYING AN Y BUSINESS ACTIVITY AND PROVISION OF INFRASTRUCTURE F ACILITY ETC., AND THUS SAFEGUARDING THE INTEREST OF THE FARMERS I S ONE OF ITS DOMINANT OBJECTS I.E. AN OBJECT OF GENERAL PUBLIC U TILITY. PAGE 2 OF 3 ITA NO.1448 & 1449/PN/2009 KRISHI UTPANNA BAZAR SAMITI A.Y. 2003-04 & 2006-07 2. AT THE OUTSET OF HARING, LEARNED AR POINTED OUT THAT IN THE MEANWHILE, THE TRIBUNAL IN THE CASE OF ASSESSEE AND OTHERS IN ITA NO. 1687/PN/2004 ETC., HAS DIRECTED THE LEARNED CIT TO GRANT REGISTRATION TO THE ASSESSEE SAMITI U/S 12A READ WITH SECTION 12AA OF THE ACT AS REQUESTED BY THEM. HE ALSO PLACED RELIANCE ON THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. AGRICULTUR AL PRODUCE AND MARKET COMMITTEE (2007) 291 ITR 419 (BOM) WHEREIN I T WAS HELD THAT INSTITUTIONS ARE ENTITLED TO REGISTRATION U/S 12A, 12AA OF THE ACT. 3. THE LEARNED DR ON THE OTHER HAND, TRIED TO JUSTI FY THE ORDERS IMPUGNED. 4. IN VIEW OF THE ABOVE-STATED POSITION ESPECIALLY THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. AG RICULTURAL PRODUCE AND MARKET COMMITTEE (SUPRA), WE ARE OF THE VIEW TH AT NOW THERE IS NO DISPUTE THAT THE ASSESSEE CONSTITUTED UNDER AGRICUL TURAL PRODUCE COMMITTEE (REGULATION) ACT, 1963, FOR REGULATING PR OCUREMENT AND SUPPLY OF AGRICULTURAL PRODUCE, IS HAVING OBJECT OF GENERA L PUBLIC UTILITY, HENCE ENTITLED TO REGISTRATION U/S 12A, 12AA OF THE ACT. WE THUS, SET ASIDE THE ORDERS OF AUTHORITIES BELOW WITH A DIRECTION TO THE A.O TO VERIFY AS TO WHETHER THE ASSESSEE HAS BEEN GRANTED REGISTRATION U/S 12A READ WITH SECTION 12AA OF THE ACT AND IF IT HAS BEEN GRANTED SAID REGISTRATION FOR THE PERIODS UNDER CONSIDERATION, THE A.O IS DIRECTED TO FRAME THE ASSESSMENTS AFRESH KEEPING IN MIND THAT THE ASSESSEE IS ENJOYIN G THE SAID REGISTRATION DURING THE PERIODS. THE GROUNDS ARE THUS ALLOWED F OR STATISTICAL PURPOSES. PAGE 3 OF 3 ITA NO.1448 & 1449/PN/2009 KRISHI UTPANNA BAZAR SAMITI A.Y. 2003-04 & 2006-07 5. IN THE RESULT, THE APPEALS ARE ALLOWED FOR STATI STICAL PURPOSES. ORDER PRONOUNCED ON THE 31 ST MAY 2011. SD/- SD/- (D. KARUNAKARA RAO ) ACCOUNTANT MEMBER ( I.C. SUDHIR) JUDICIAL MEMBER PUNE DATED THE 31 ST MAY 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)- II NASIK 4. THE CIT- II NASIK 5. THE D.R, A BENCH, PUNE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL PUNE