Agricultural Market Committee, Hyderabad V. Income Tax Officer, Nirmal

ITA 1462/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74596 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 04-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 12AA; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1461/HYD/2013 A.Y. 2003-04 ITA NO. 1462/HYD/2013 A.Y. 2006-07 THE AGRI. MARKET COMMITTEE, BHAINSA; PAN: AAALA0338F VS. THE INCOME TAX OFFICER WARD-1, NIRMAL [APPELLANT] [RESPONDENT] APPELLANT BY: SRI S. RAMA RAO RESPONDENT BY: SRI SOLGY JOSE T. KOTTARAM DATE OF HEARING: 27.02.2014 DATE OF PRONOUNCEMENT: 27.02.2014 ORDER PER CHANDRA POOJARI, AM : THE ABOVE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE COMMON ORDER OF THE CIT(A)-18, MUMBAI D ATED 20.8.2013 FOR ASSESSMENT YEARS 2006-07 AND 2003-04. 2. THE ASSESSEE RAISED THE FOLLOWING COMMON GROUNDS OF APPEAL IN BOTH THE APPEALS: (1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. (2) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ER RED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER I N NOT ALLOWING EXEMPTION U/S 11 OF THE IT ACT IN SPITE OF THE FACT THAT THE HON'BLE ITAT, HYDERABAD DIRECTED THE DIREC TOR OF INCOME-TAX (EXEMPTIONS) TO GRANT REGISTRATION U/S 1 2AA OF THE IT ACT. (3) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ER RED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER I N REJECTING THE EXEMPTION U/S 10(26AAB) OF THE IT ACT . ITA NOS. 1461 & 1462/HYD/2013 AGRIL. MARKET COMMITTEE, BHAINSA ================================ 2 (4) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OU GHT TO HAVE CONSIDERED THE FACT THAT THE AMOUNT DERIVED BY THE AGRICULTURAL MARKET COMMITTEE DOES NOT REPRESENT IT S INCOME BUT REPRESENTS THE INCOME DERIVED BY THE GOVERNMENT OF ANDHRA PRADESH AS THE SAID RECEIPTS W ERE DEPOSITED IN SUB TREASURY AND SUCH RECEIPTS WERE TO BE SPENT ONLY ACCORDING TO THE DIRECTION OF THE GOVERN MENT OF ANDHRA PRADESH. (5) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) OU GHT TO HAVE CONSIDERED THE FACT THAT THE APPELLANT CANN OT ACT INDEPENDENTLY ON ITS OWN BUT HAS TO ACT IN ACCORDAN CE WITH THE PROVISIONS OF THE LAW FRAMED BY THE GOVERNMENT OF ANDHRA PRADESH AND THE DIRECTIONS BY THE GOVERNMENT FROM TIME TO TIME. (6) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ER RED IN CONFIRMING THE DETERMINATION OF THE TOTAL INCOME OF THE APPELLANT AT RS. 51,62,110/- WITHOUT CONSIDERING TH E FACT THAT THE AMOUNT SPENT ON DEVELOPMENTAL ACTIVITIES A S PER THE DIRECTIONS OF THE GOVERNMENT ALSO ARE ALLOWABLE AS A DEDUCTION. (7) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ER RED IN NOT CONSIDERING THE GROUND WITH REGARD TO THE LE VY OF TAX. (8) AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINI ON THAT ON EARLIER OCCASION THE ASSESSEE CAME IN APPEA L BEFORE THIS TRIBUNAL SEEKING REGISTRATION U/S. 12AA OF INCO ME-TAX ACT, 1961. THE TRIBUNAL VIDE ORDER DATED 15.04.200 8 IN ITA NO. 230/HYD/2008 DIRECTED THE DIT(E) TO GRANT REGISTR ATION U/S. 12AA OF THE ACT. BEING SO, ON GRANTING REGISTR ATION U/S. 12AA OF THE ACT, THE AO IS DIRECTED TO PASS THE CON SEQUENTIAL ORDER IN ACCORDANCE WITH LAW. THE OTHER GROUNDS RA ISED BY THE ASSESSEE BECOME INFRUCTUOUS AS THE MAIN ISSUE R ELATING TO GRANTING OF REGISTRATION U/S. 12AA OF THE ACT WHICH IS TO BE CONSIDERED BY THE AO IN ACCORDANCE WITH LAW. ITA NOS. 1461 & 1462/HYD/2013 AGRIL. MARKET COMMITTEE, BHAINSA ================================ 3 (9) IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH FEBRUARY, 2014. SD/- (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 27 TH FEBRUARY, 2014 TPRAO COPY FORWARDED TO: 1. THE AGRICULTURAL MARKET COMMITTEE, C/O. SRI S. RA MA RAO, ADVOCATE, FLAT NO. 102, SHRIYA'S ELEGANCE, H. NO. 3- 6-643, ST. NO. 9, HIMAYATNAGAR, HYDERABAD-500 029. 2. M/S. MALAXMI HIGHWAY PVT. LTD., # 119, ROAD NO. 1 0, JUBILEE HILLS, HYDERABAD-500 033. 3. THE CIT(A)-18, MUMBAI. 4. THE CIT-5/6, HYDERABAD. 5. THE DR BENCH 'B', ITAT, HYDERABAD