Krishi Utpanna Bazar samiti, Jalgaon V. ITO Wd.-1(3), Jalgaon

ITA 198/PUN/2010

• Counselvise Citation: 19824514 RSA 2010
• Duration Of Justice: 1 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-08-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 03-02-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K AMBASTHA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER I.T.A. NO. 198/PN/2010 : A.Y. 2006-07 KRISHI UTPANNA BAZAR SAMITEE BUS STAND ROAD, CHOPDA 25 107 DIST. JALGAON PAN AAAAK301 J APPELLANT VS. I.T.O. WARD 1(3) JALGAON RESPONDENT APPELLANT BY : SMT. DEEPA KHARE RESPONDENT BY : SHRI S.K. AMBASTHA ORDER PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II NASIK DATED 13-11-2009 FOR A .Y. 2006-07 ON THE FOLLOWING GROUNDS. 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE LEARNED AO IN DENYING THE EXEMPTION U/S 10(20) OF THE ACT IN RESPECT OF ITS INCOME. 2. THE LEARNED CI(A) ERRED IN LAW AND ON FACTS IN HOLDING THAT THE APPELLANT IS NOT A LOCAL AUTHORITY ENTITLED FOR EXEMPTION U/S 10(20) OF THE ACT AND CONFIRMING THE ACTION OF THE LEARNED AO IN ASSESSIN G THE INCOME A RS. 34,00,390/-. 2. THE ASSESSEE IS AGRICULTURAL PRODUCE MARKET COMMITTEE OF CHOPADA WHICH IS CONTROLLED BY THE GOVERNMENT OF MAHARASHTRA. THE ASSESSING OFFICER REJECTED THE CLAIM OF EXEMPTION U/S 10(20) OF THE A CT WHICH 2 ITA NO. 198/PN/2010 KRISHI UTPANNA BAZAR SAMITI A.Y. 2006-07 WAS CONFIRMED BY THE CIT(A). THE SAME HAS BEEN OPP OSED BEFORE US. BRIEF FACTS OF THE CASE ARE THAT THE ASS ESSEE WAS ENJOYING EXEMPTION UPTO A.Y. 2002-03 AND BECAME INELIGIBLE FOR THE SAID EXEMPTION IN VIEW OF THE EX PLANATION INTRODUCED TO SECTION 10(20) OF THE ACT BY THE FINA NCE ACT, 2002. DUE TO THIS AMENDMENT, THE ASSESSEE BECAME INELIGIBLE FOR EXEMPTION U/S 10(20) OF THE ACT. TH E ASSESSEE KRISHI UTPANNA BAZAR SAMITI IS NOT A LOCAL AUTHORITY U/S 10(20) OF THE ACT AS AMENDED BY THE F INANCE ACT, 2002. THEREFORE, IT IS NOT EXEMPT FROM INCOME- TAX. THE EXPLANATION TO SECTION 10(20) PROVIDES A DEFINITION TO THE EXPRESSION LOCAL AUTHORITY AND THAT IS AN EXHAUST IVE DEFINITION. IT IS NOT AN INCLUSIVE DEFINITION. THI S VIEW IS FORTIFIED BY THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF AGRICULTURAL PRODUCE MARKET COMMITTEE, NARE LA VS. CIT AND ANOR (2008) 305 ITR 1 (SC). IN VIEW OF THE ABOVE DISCUSSION, NO INTERFERENCE IS CALLED FOR WITH THE ORDER OF THE CIT(A). WE UPHOLD THE SAME. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 24 TH AUGUST 2011. S D/ - (G.S. PANNU) ACCOUNTANT MEMBER S D/ - (SHAILENDRA KUMAR YADAV JUDICIAL MEMBER PUNE DATED THE 24 TH AUGUST 2011 ANKAM COPY OF THE ORDER IS FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A)- III PUNE 4. THE CIT III PUNE 5. THE D.R, ITAT PUNE BENCH, PUNE 6. GUARD FILE BY ORDER 3 ITA NO. 198/PN/2010 KRISHI UTPANNA BAZAR SAMITI A.Y. 2006-07 ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL