Agricultural Market Committee, Gopalapuram V. ITO, Tanuku

ITA 226/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0128 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-08-2009
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 04-12-2013
• Assessment Year: 2006-2007
• Appeal Filed On: 07-05-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJIV KUMAR SINGH
• Keywords: Application of stay
• Section: 10

Judgement Text

PAGE 1 OF 3 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 I.T.A.NO.226/VIZAG/2009 2005-06 AAALA0360K AGRICU LTURAL MARKET COMMITTEE, GOPALAPURAM I.T.O., WARD-2, TANUKU 2 I.T.A.NO.227/VIZAG/2009 2006-07 AAALA0360K AGRICU LTURAL MARKET COMMITTEE, GOPALAPURAM -DO- 3 SP NO./23/VIZAG/2009 2005-06 AAALA0360K AGRICULTU RAL MARKET COMMITTEE, GOPALAPURAM -DO- 4 SP NO./24/VIZAG/2009 2006-07 AAALA0360K AGRICULTU RAL MARKET COMMITTEE, GOPALAPURAM -DO- APPELLANTS BY: SHRI G.V.N. HARI, CA RESPONDENTS BY: SHRI RAJIV KUMAR SINGH, DR ORDER PER SHRI B R BASKARAN, ACCOUNTANT MEMBER : THESE APPEALS, FILED BY THE ASSESSEE ARE DI RECTED AGAINST THE COMMON ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS), RAJAHMUNDRY AND THEY RELATE TO THE ASSESSMENT YEARS 2005-06 AND 200 6-07. 2. THE ASSESSEE HAS FILED APPLICATIONS SEEKING STAY OF COLLECTION OF DEMAND WITH THE SUBMISSION THAT THE ISSUE RAISED BY THE ASSESSE E IS COVERED BY THE ORDER DATED 28-11-2008 IN ITA NO.90/VIZAG/2007 AND BATCH PASSED BY THIS BENCH. SINCE THE ISSUE IS COVERED BY THE ORDER OF THIS BEN CH AS STATED ABOVE, WE CONSIDER THAT THESE APPEALS CAN BE TAKEN UP ON PRIORITY BASI S, INSTEAD OF GRANTING THE STAY. IN THIS CONNECTION, THE OBJECTIONS OF THE LEARNED DE PARTMENTAL REPRESENTATIVE WERE CALLED FOR AND SINCE THE LEARNED DR HAS NO OBJ ECTION FOR THE CASES BEING TAKEN UP ON PRIORITY BASIS, THESE APPEALS ARE TAKEN UP FOR HEARING TO DAY. PAGE 2 OF 3 3. THOUGH THE ASSESSEE HAS RAISED SEVERAL GROUNDS, THE CORE ISSUE, WHICH WAS PRESSED FOR CONSIDERATION, WAS WITH REGARD TO THE C LAIM OF EXEMPTION UNDER SECTION 10(26AAB) OF THE ACT. BY PLACING RELIANCE ON THE ORDER OF THE BENCH CITED ABOVE, IT WAS SUBMITTED THAT THE AMENDMENT TO SECTI ON 10(26AAB) IS CLARIFICATORY IN NATURE AND THEREFORE RETROACTIVE IN OPERATION IN THE LIGHT OF THE REPLIES GIVEN BY THE FINANCE MINISTER DURING THE COURSE OF DEBATE IN PARLIAMENT WHILE MOVING THE BILL AND HENCE BY APPLICATION OF SECTION 10(26AAB) OF THE ACT, THE INCOME OF THE AGRICULTURAL MARKET COMMITTEE, WHICH WAS ORIGINALLY CLAIMED TO BE EXEMPT UNDER SECTION 10(20) OF THE ACT IS OTHERWISE DESERVE TO B E TREATED AS NOT TAXABLE BY VIRTUE OF SECTION 10(26AAB) OF THE ACT. 4. IN A BATCH OF APPEALS, I.E., IN I.T.A.NO.90/VI ZAG/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 BEL OW: HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, WE ARE OF THE FIRM VIEW THAT THE INSERTION OF SUB-CLAUSE (26AAB) TO SECTION 10 OF THE INCOME TAX ACT IS ESSENTIALLY INTENDED TO DECLARE THE INTENTION OF THE LEGISLATURE OF NOT TAXING THE INCO ME OF AMCS CONSTITUTED UNDER ANY LAW FOR THE TIME BEING IN FOR CE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICULTURA L PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OP ERATION AND APPLICABLE EVEN FOR THE PRIOR YEARS,. WE ORDER ACCO RDINGLY. SINCE THE LEARNED COUNSEL APPEARING ON BEHALF OF TH E ASSESSEES MAINLY PRESSED FOR CONSIDERATION THE SAID CONCERNING EXEMP TION U/S 10(26AAB), HAVING REGARD TO THE FACT THAT THE ISSUE STANDS SQUARELY C OVERED BY THE AFORE-SAID DECISION, WE REVERSE THE ORDERS PASSED BY THE TAX A UTHORITIES AND HOLD THAT THE INCOME OF THE ASSESSEES HEREIN IS EXEMPT FROM LEVY OF TAX BY VIRTUE OF RETROACTIVE OPERATION OF SECTION 10(26AAB) OF THE ACT AND DIREC T THE ASSESSING OFFICER ACCORDINGLY. PAGE 3 OF 3 5. IN VIEW OF OUR DECISION ON THE ABOVE SAID ISSUE, IT IS NOT NECESSARY TO CONSIDER VARIOUS OTHER ISSUES, WHICH WERE URGED BY THE ASSESSEE IN THE GROUNDS OF APPEAL. IT IS NOT OUT OF PLACE TO MENTION THAT T HE LEARNED COUNSEL DID NOT SERIOUSLY PRESS FOR CONSIDERATION THE OTHER GROUNDS IN VIEW OF THE ORDER PRONOUNCED BY US ON THE LEGAL ISSUE. 6. IN THE RESULT, THE APPEALS FILED BY THE ASSES SEE ARE PARTLY ALLOWED AND THE STAY APPLICATIONS ARE REJECTED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT. 13-8-2009 SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, 13 TH AUGUST, 2009 COPY TO 1. AGRICULTURAL MARKET COMMITTEE, GOPALAPURAM, WEST GODAVARI DISTRICT. 2. I.T.O., WARD-2, TANUKU 3. COMMISSIONER OF INCOME TAX (APPEALS), RAJAHMUNDRY 4. COMMISSIONER OF INCOME TAX, RAJAHMUNDRY 5. THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., VISAKH APATNAM 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM