ITO, Srikakulam V. Agricultural Market Committee, Kotabommali

ITA 177/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1732 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2005-2006
• Appeal Filed On: 06-04-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRATA SARKAR

Judgement Text

PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM B EFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI B.R.BASKARAN, ACCOUNTANT MEMBER SL. NO. CASE NO. ASST. YEAR P.A.N.NO. APPELLANTS RESPONDENTS 1 ITA NO.163/ VIZ/2009 2005 - 06 AAAALA 0383 Q ITO, WARD - 1, SRIKAKULAM. AGRICULTURAL MARKET COMMITTEE, AMADALAVALASA. 2 CO NO.34/VIZ/2009 2005 - 06 AAAALA 0383 Q AGRICULTURAL MARKET COMMITTEE, AMADALAVALASA ITO, WARD - 1, SRIKAKULAM. . 3 ITA NO.84/VIZ/2009 2005 - 06 A - 601 ITO, WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, BOBBILI. 4 CO NO.18/VIZ/2009 2005 - 06 A - 601 AGRICULTURAL MARKET COMMITTEE, BOBBILI. ITO, WARD - 1, VIZIANAGARAM 5 ITA NO.132/VIZ/2009 2004 - 05 AAALA 0343 A ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, HIRAMANDALAM 6 CO NO.32/VIZ/2009 2004 - 05 AAALA 0343 A AGRICULTURAL MARKET COMMITTEE, HIRAMANDALAM ITO, WARD - 1, SRIKAKULAM 7 ITA NO.166/VIZ/2009 2005 - 06 AAALA 0343 A ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, HIRAMANDALAM 8 CO NO.33 /VIZ/2009 2005 - 06 AAALA 0343 A AGRICULTURAL MARKET COMMITTEE, HIRAMANDALAM ITO, WARD - 1, SRIKAKULAM 9 ITA NO.131/VIZ/2009 2004 - 05 AAKFA 8419 P ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, ITCHAPURAM 10 ITA NO.167/VIZ/2009 2005 - 06 AAKFA 8419 P IT O, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, ITCHAPURAM 11 ITA NO.168/VIZ/2009 2006 - 07 AAKFA 8419 P ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, ITCHAPURAM 12 ITA NO.129/VIZ/2009 2004 - 05 AAKFA 8418 N ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, KOTABOMMALI 13 ITA NO.177/VIZ/2009 2005 - 06 AAKFA 8418 N ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, KOTABOMMALI 14 ITA NO.178/VIZ/2009 2006 - 07 AAKFA 8418 N ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, KOTABOMMALI 15 ITA NO.161/VIZ/2009 2005 - 06 AAALA 0404 E ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, NARASANNAPETA. 16 CO NO.37/VIZ/2009 2005 - 06 AAALA 0404 E AGRICULTURAL MARKET COMMITTEE, NARASANNAPETA. ITO, WARD - 1, SRIKAKULAM 17 ITA NO.65/VIZ/2009 2003 - 0 4 A - 0608 ITO, WARD - 1, ANAKAPALLE AGRICULTURAL MARKET COMMITTEE, NARSIPATNAM PAGE 2 OF 5 18 CO NO.15/VIZ/2009 2003 - 04 A - 0608 AGRICULTURAL MARKET COMMITTEE, NARSIPATNAM ITO, WARD - 1, ANAKAPALLE 19 ITA NO.198/VIZ/2009 2003 - 04 AAALA 0785 A ITO, WARD - 1, ANAKAPALLE AGRIC ULTURAL MARKET COMMITTEE, PADERU 20 CO NO.45/VIZ/2009 2003 - 04 AAALA 0785 A AGRICULTURAL MARKET COMMITTEE, PADERU ITO, WARD - 1, ANAKAPALLE 21 ITA NO.199/VIZ/2009 2004 - 05 AAALA 0785 A ITO, WARD - 1, ANAKAPALLE AGRICULTURAL MARKET COMMITTEE, PADERU 22 CO NO. 46/VIZ/2009 2004 - 05 AAALA 0785 A AGRICULTURAL MARKET COMMITTEE, PADERU ITO, WARD - 1, ANAKAPALLE 23 ITA NO.200/VIZ/2009 2005 - 06 AAALA 0785 A ITO, WARD - 1, ANAKAPALLE AGRICULTURAL MARKET COMMITTEE, PADERU 24 CO NO.47/VIZ/2009 2005 - 06 AAALA 0785 A AGRICULTURA L MARKET COMMITTEE, PADERU ITO, WARD - 1, ANAKAPALLE 25 ITA NO.201/VIZ/2009 2006 - 07 AAALA 0785 A ITO, WARD - 1, ANAKAPALLE AGRICULTURAL MARKET COMMITTEE, PADERU 26 CO NO.48/VIZ/2009 2006 - 07 AAALA 0785 A AGRICULTURAL MARKET COMMITTEE, PADERU. ITO, WARD - 1, ANA KAPALLE 27 ITA NO.133/VIZ/2009 2004 - 05 AAALA 0362 M ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, PALAKONDA 28 CO NO.21/VIZ/2009 2004 - 05 AAALA 0362 M AGRICULTURAL MARKET COMMITTEE, PALAKONDA ITO, WARD - 1, SRIKAKULAM 29 ITA NO.133/VIZ/2009 2005 - 0 6 AAALA 0362 M ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, PALAKONDA 30 CO NO.39/VIZ/2009 2005 - 06 AAALA 0362 M AGRICULTURAL MARKET COMMITTEE, PALAKONDA ITO, WARD - 1, SRIKAKULAM 31 ITA NO.83/VIZ/2009 2005 - 06 A - 603 ITO, WARD - 1, VIZIANAGARAM AGRIC ULTURAL MARKET COMMITTEE, PARVATHIPURAM. 32 CO NO.16/VIZ/2009 2005 - 06 A - 603 AGRICULTURAL MARKET COMMITTEE, PARVATHIPURAM ITO, WARD - 1, VIZIANAGARAM 33 ITA NO.125/VIZ/2009 2004 - 05 AAALA 0381 N ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, PATHAPATNAM 34 CO NO.19/VIZ/2009 2004 - 05 AAALA 0381 N AGRICULTURAL MARKET COMMITTEE, PATHAPATNAM ITO, WARD - 2, SRIKAKULAM 35 ITA NO.165/VIZ/2009 2005 - 06 AAALA 0599 G ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, PONDURU 36 ITA NO.135/VIZ/2009 2004 - 05 A AALA 0361 J ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, RAJAM 37 CO NO.20/VIZ.2009 2004 - 05 AAALA 0361 J AGRICULTURAL MARKET COMMITTEE, RAJAM ITO, WARD - 1, SRIKAKULAM 38 ITA NO.162/VIZ/2009 2005 - 06 AAALA 0361 J ITO, WARD - 1, SRIKAKULAM AGRICULTUR AL MARKET COMMITTEE, RAJAM 39 CO NO.38/VIZ.2009 2005 - 06 AAALA 0361 J AGRICULTURAL MARKET COMMITTEE, RAJAM ITO, WARD - 1, SRIKAKULAM 40 ITA NO.171/VIZ/2009 2005 - 06 AAALA 0384 K ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, SOMPET PAGE 3 OF 5 41 CO NO.35/VIZ.2 009 2005 - 06 AAALA 0384 K AGRICULTURAL MARKET COMMITTEE, SOMPET ITO, WARD - 2, SRIKAKULAM 42 ITA NO.172/VIZ/2009 2006 - 07 AAALA 0384 K ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, SOMPET 43 CO NO.36/VIZ.2009 2006 - 07 AAALA 0384 K AGRICULTURAL MARKET COMMITTEE, SOMPET ITO, WARD - 2, SRIKAKULAM 44 ITA NO.130/VIZ/2009 2004 - 05 AAALA 0385 J ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, SRIKAKULAM 45 ITA NO.181/VIZ/2009 2005 - 06 AAALA 0385 J ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, SR IKAKULAM 46 ITA NO.182/VIZ/2009 2006 - 07 AAALA 0385 J ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, SRIKAKULAM 47 ITA NO.128/VIZ/2009 2004 - 05 AAALA 0382 R ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, TEKKALI 48 ITA NO.169/VIZ/2009 2005 - 06 AAKFA 8418 N ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, TEKKALI 49 ITA NO.170/VIZ/2009 2006 - 07 AAKFA 8418 N ITO, WARD - 2, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, TEKKALI 50 ITA NO.63/VIZ/2009 2003 - 04 A - 0607 ITO, WARD - 1, ANAKAPALLE AGRICU LTURAL MARKET COMMITTEE, YELAMANCHILI 51 CO NO.13/VIZ/2009 2003 - 04 A - 0607 AGRICULTURAL MARKET COMMITTEE, YELAMANCHILI ITO, WARD - 1, ANAKAPALLE 52 ITA NO.64/VIZ/2009 2004 - 05 A - 0607 ITO, WARD - 1, ANAKAPALLE AGRICULTURAL MARKET COMMITTEE, YELAMANCHILI 53 CO NO.14/VIZ/2009 2004 - 05 A - 0607 AGRICULTURAL MARKET COMMITTEE, YELAMANCHILI ITO, WARD - 1, ANAKAPALLE ASSESSEE BY : SHRI G.V.N. HARI, CA REVENUE BY : SHRI SUBRATA SARKAR, CIT-DR ORDER PER BENCH: - THE APPEALS FILED AT THE INSTANCE OF THE RE VENUE AS WELL AS THE CROSS OBJECTIONS FILED AT THE INSTANCE OF THE ASSESSEES ARE DIRECTED AGAIN ST THE ORDER OF THE LD CIT (A)-I VISAKHAPATNAM PASSED AGAINST THE QUANTUM ASSESSMENT S RELATING TO ASSESSMENT YEARS 2004-05/2005-06/2006-07 AS THE CASE MAY BE. 2. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS, T HE ONLY ISSUE THAT EMERGES IS WHETHER THE LD CIT (A) IS RIGHT IN HOLDING THAT THE SECTION 10(26AAB) IS RETROACTIVE IN OPERATION AND THEREBY THE INCOME OF THESE ASSESSEES ARE EXEMPT U/S 10(26AAB) OF THE ACT. BY FILING THE CROSS OBJECTIONS, CERTAIN ASSES SEES HAVE ONLY SUPPORTED THE ORDER OF THE LD CIT (A). 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. FOR THE SAKE OF CONVENIENCE WE EXTRACT THE OPERATIVE PART OF THE OR DER OF THE LD CIT (A). PAGE 4 OF 5 4. I HAVE CAREFULLY EXAMINED THE CONTENTION RAISED BY THE AUTHORISED REPRESENTATIVE OF THE APPELLANT. THE ONLY ISSUE FOR CONSIDERATION AS URGED BY THE AUTHORISED REPRESENTATIVE OF THE APPEL LANT IS WHETHER INSERTION OF SUB-CLAUSE (26AAB) TO SEC.10 OF THE AC T WAS A DECLARATIVE ACT TO REMOVE DOUBTS EXISTING WITH REGARD TO THE EF FECT OF PRE-EXISTING STATUTE AND HENCE RETROSPECTIVE IN OPERATION. IN TH E DECISION RELIED UPON BY THE AUTHORISED REPRESENTATIVE OF THE APPELL ANT OF THE HONBLE JURISDICTION ITAT, IT HAS BEEN CONCLUDED AT PARA (1 4) OF THE ORDER AS UNDER: SINCE WE ARE OF THE VIEW THAT THE PROVISIONS OF SEC TION 10(26AAB) OF THE INCOME TAX ACT ARE INTENDED TO BE RETROACTIVE I N OPERATION, HAVING BEEN INSERTED IN THE STATUTE BOOK WITH A VIEW TO CL ARIFY THE POSITION OF AMCS EVEN UNDER PRE-EXISTING STATUTE, AND THE FINAN CE MINISTER HAVING SPECIFICALLY MENTIONED, WHILE REPLYING TO THE DEBAT E IN THE LOK SABHA, THAT THERE IS NO INTENTION TO TAX AMCS, THE ENTIRE FEE/INCOME COLLECTED/RECEIVED HAS TO BE CONSIDERED AS EXEMPT F ROM THE LEVY OF TAX IN WHICH EVEN THE DECISION ON THE ANCILLARY ISSUE I S OF ACADEMIC IMPORTANCE AND THUS NEED NOT BE GONE INTO RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THE HO NBLE JURISDICTIONAL TRIBUNAL, IT IS HELD THAT INSERTION OF SUB-CLAUSE ( 26AAB) TO SEC.10 OF THE ACT IS ESSENTIALLY INTENDED TO DECLARE THE INTENTIO N OF THE LEGISLATURE OF NOT TAXING THE INCOME OF AMCS CONSTITUTED UNDER ANY LAW FOR THE TIME BEING IN FORCE FOR THE PURPOSES OF REGULATING THE M ARKETING OF AGRICULTURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OPERATION AND APPLICABLE EVEN FOR THE PRIOR YEARS. THE SAME CONCLUSION HAVE BEEN REITERATED IN ITA NO.536/VIZAG/2006 IN TH E CASE OF THE APPELLANT FOR THE ASST.YEAR 2003-04 VIDE ORDER DT.3 0-2-08 BY THE HONBLE JURISDICTIONAL TRIBUNAL. NEEDLESS TO MENTIO N THAT JUDGEMENT DELIVERED BY THE JURISDICTIONAL TRIBUNAL IS BINDING AND IT IS NECESSARY FOR JUDICIAL UNITY AND DISCIPLINE THAT ALL AUTHORITIES BELOW THE TRIBUNAL MUST ACCEPT AS BINDING THE JUDGEMENT OF THE TRIBUNAL. TH ESE ARE THE VIEWS OF THE HONBLE HIGH COURT OF BOMBAY IN THE CASE OF BANK OF BARODA V. H.C. SHRIVASTAVA REPORTED IN 256 ITR 385. ACCORDING LY, THE INCOME, IF ANY, OF THE APPELLANT IS NOT CHARGEABLE TO TAX. THU S, THE LEGAL ISSUE BEING SETTLED IN FAVOUR OF THE APPELLANT BECAUSE OF THE DECISION OF THE HONBLE JURISDICTIONAL TRIBUNAL I AM NOT INCLINED T O GO INTO THE OTHER GROUNDS OF APPEALS RAISED BY THE APPELLANT. 4. WE NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THIS BENCH ON THE INSTANT ISSUE. 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 BELOW: 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 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. PAGE 5 OF 5 5. SINCE THE LD CIT(A) HAS FOLLOWED THE DECISIO N RENDERED BY THIS BENCH, WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. 6. IN THE RESULT, THE APPEALS FILED BY THE REVE NUE ARE DISMISSED AND THE CROSS OBJECTIONS FILED BY THE ASSESSEES ARE ALLOWED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 16 TH OCTOBER, 2009 SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 16 TH OCTOBER, 2009 COPY TO 1. AGRICULTURAL MARKET COMMITTEE, AMUDALAVALASA 2. AGRICULTURAL MARKET COMMITTEE, BOBBILI 3. AGRICULTURAL MARKET COMMITTEE, HIRAMANDALAM. 4. AGRICULTURAL MARKET COMMITTEE, ITCHAPURAM. 5. AGRICULTURAL MARKET COMMITTEE, KOTABOMMALI 6. AGRICULTURAL MARKET COMMITTEE, NARASANNAPETA. 7. AGRICULTURAL MARKET COMMITTEE, NARASIPATNAM. 8. AGRICULTURAL MARKET COMMITTEE, PADERU 9. AGRICULTURAL MARKET COMMITTEE, PALAKONDA 10. AGRICULTURAL MARKET COMMITTEE, PARVATHIPURAM. 11. AGRICULTURAL MARKET COMMITTEE, PATHAPATNAM. 12. AGRICULTURAL MARKET COMMITTEE, PONDURU 13. AGRICULTURAL MARKET COMMITTEE, RAJAM 14. AGRICULTURAL MARKET COMMITTEE, SOMPETA. 15. AGRICULTURAL MARKET COMMITTEE, SRIKAKULAM 16. AGRICULTURAL MARKET COMMITTEE, TEKKALI 17. AGRICULTURAL MARKET COMMITTEE, YELAMANCHIL 18. ITO, WARD-1, SRIKAKULAM. 19. ITO, WARD-1, VIZIANAGARAM. 20. ITO, WARD-2. SRIKAKULAM. 21. ITO, WARD-1, ANAKAPALLI 22. COMMISSIONER OF INCOME TAX (APPEALS)-I, VISAKHA PATNAM. 23.COMMISSIONER OF INCOME TAX, VISAKHAPATNAM. 24.THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., VISAK HAPATNAM 25. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM