Sri ITO, Ward-1, Vizianagaram V. The Agricultural Market Committee, Bobbili

ITA 266/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 2876 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 7 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 14-05-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUBRATA SARKAR

Judgement Text

PAGE 1 OF 4 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.109 /V IZ/2009 2005 - 06 AAAALA 0418 L ITO, WARD - 4 (1) VISAKHAPATNAM. AGRICULTURAL MARKET COMMITTEE, VISAKHAPATNAM 2 CO NO. 2 3/VIZ/2009 (ITA 109/VIZ/2009) 2005 - 06 AAAALA 0418 L AGRICULTURAL MARKET COMMITTEE, VISAKHAPATNAM ITO WARD - 2 SRIKAKULAM 3 ITA NO.126 /VIZ/ 2009 2004 - 05 AAALA 0380 P ITO, WARD - 2 , SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, KANCHILI 4 CO NO.27/VIZ/2009 (ITA 126/VIZ/2009) 2004 - 05 AAALA 0380 P AGRICULTURAL MARKET COMMITTEE, KANCHILI ITO WARD - 2, SRIKAKULAM 5 ITA NO.12 7 /VIZ/2009 2004 - 05 ITO, WARD - 2 , SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, SOMPETA 6 CO NO. 2 2/VIZ/2009 (ITA 127/VIZ/2009) 2004 - 05 AGRICULTURAL MARKET COMMITTEE, SOMPETA ITO WARD - 2 SRIKAKULAM 7 ITA NO.134 /VIZ/2009 2004 - 05 AAALA 038 3 Q ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, AAMADALAVALSA 8 CONO.24 /VIZ/2009 (ITA 134/VIZ/2009) 2004 - 05 AAALA 0383 Q AGRICULTURAL MARKET COMMITTEE, AAMDALAVALSA ITO, WARD - 1, SRIKAKULAM 9 ITA NO.136 /VIZ/2009 2004 - 05 AAALA 0404 E ITO, WARD - 1, SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, NARSANNAPETTA 10 CO NO.25/VIZ/2009 (ITA 136/VIZ/2009) 2004 - 05 AAALA 0404 E AGRICULTURAL MARKET COMMITTEE, NARASANNAPETTA ITO WARD - 1 SRIKAKULAM 11 ITA NO.173 /VIZ/2009 2005 - 06 AAALA 0381 N ITO, WARD - 2 , SRIKAKULAM AGRICULTURAL MARKET COMMITTEE PATHAPATNAM 12 I TA NO.174 /VIZ/2009 2006 - 07 AAALA 0381 N ITO, WARD - 2 , SRIKAKULAM AGRICULTURAL MARKET COMMITTEE , PATHAPATNAM 13 CO NO.28/VIZ/2009 (ITA 173/VIZ/2009) 2005 - 06 AAALA 0381 N AGRICULTURAL MARKET COMMITTEE, PATHAPATNAM ITO WARD - 2 SRIKAKULAM 14 CO.NO.29/VIZ/200 9 (ITA 174/VIZ/2009) 2006 - 07 AAALA 0381 N AGRICULTURAL MARKET COMMITTEE, PATHAPATNAM ITO WARD - 2 SRIKAKULAM 15 ITA NO.175 /VIZ/2009 2005 - 06 AAALA 0380 P AGRICULTURAL MARKET COMMITTEE, KANCHILI ITO WARD - 2 SRIKAKULAM 16 ITA NO.176/VIZ/2009 2006 - 07 AAALA 03 80 P ITO WARD - 2 SRIKAKULAM AGRICULTURAL MARKET COMMITTEE, KANCHILI PAGE 2 OF 4 17 CO NO.30/VIZ/2009 (ITA 175/VIZ/2009) 2005 - 06 AAALA 0380 P AGRICULTURAL MARKET COMMITTEE, KANCHILI ITO WARD - 2 SRIKAKULAM 18 CO NO.31/VIZ/2009 (ITA 176/VIZ/2009) 2006 - 07 AAALA 0380 P A GRICULTURAL MARKET COMMITTEE, KANCHILI ITO WARD - 2 SRIKAKULAM 19 ITA NO.262 /VIZ/2009 2003 - 04 AAALA 0866 C ITO WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, KURUPAM 20 ITA NO.263/VIZ/2009 2004 - 05 AAALA 0866 C ITO WARD - 1, VIZIANAGARAM, AGRICULTURAL MA RKET COMMITTEE, KURUPAM 21 ITA NO.264 /VIZ/2009 2006 - 07 AAALA 0866 C ITO WARD - 1 VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE , KURUPAM 22 CO NO. 53 /VIZ/2009 (ITA 262/VIZ/2009) 2003 - 04 - AGRICULTURAL MARKET COMMITTEE,KURUPAM ITO WARD - 1 VIZIANAGARAM 23 CO NO. 54/VIZ/2009 (ITA 263/VIZ/2009) 2004 - 05 - ITO WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE , KURUPAM 24 CO NO. 55 /VIZ/2009 (ITA 264/VIZ/2009) 2006 - 07 - ITO WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, KURUPAM 25 ITA NO.2 65 /VIZ/2009 2003 - 04 AAAL A 0867 D ITO, WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, BOBBILI 26 ITA NO.266/VIZ/2009 2006 - 07 AAALA 0867 D ITO WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, BOBBILI 27 CO.NO.56/VIZ/2009 (ITA 265/VIZ/2009) 2003 - 04 - ITO, WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, BOBBILI 28 CO NO.57 /VIZ/2009 (ITA 266/VIZ/2009) 2006 - 07 - ITO WARD - 1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, BOBBILI ASSESSEE BY : SHRI SUBRATA SARKAR, CIT-DR RESPONDENT BY : NONE 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 MENTIONED AGAINST THE EACH OF THE ITA NUMBERS ABOVE . 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 3 OF 4 4. I HAVE CAREFULLY EXAMINED THE CONTENTION RAISED BY THE AUTHORISED REPRESENTATIVE OF THE APPELLANT. THE LEGAL ISSUE FO R 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 AGRICULTURAL MARKET COMMITTEES EVEN UNDER PRE-EXIST ING STATUTE, AND THE FINANCE MINISTER HAVING SPECIFICAL LY MENTIONED, WHILE REPLYING TO THE DEBATE IN THE LOK SABHA, THAT THERE IS NO INTENTION TO TAX AGRICULTURAL MARKET COMMITTEES, 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. NEEDLESS TO MENTION THAT JUDGEMENT DELIVERED BY THE JURISDICTIONAL TRIB UNAL IS BINDING AND IT IS NECESSARY FOR JUDICIAL UNITY AND DISCIPLINE THAT ALL AUTHORITIES BELOW THE TRIBUNAL MUST ACCEPT AS BINDING THE JUDGEMENT O F THE TRIBUNAL. THESE ARE THE VIEWS OF THE HONBLE HIGH COURT OF BO MBAY IN THE CASE OF BANK OF BARODA V. H.C. SHRIVASTAVA REPORTED IN 2 56 ITR 385. ACCORDINGLY, THE INCOME, IF ANY, OF THE APPELLANT I S NOT CHARGEABLE TO TAX. THUS, THE LEGAL ISSUE BEING SETTLED IN FAVOUR OF THE APPELLANT BECAUSE OF THE DECISION OF THE HONBLE JURISDICTION AL TRIBUNAL I AM NOT INCLINED TO GO INTO THE OTHER GROUNDS OF APPEALS RA ISED 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 AGRICULTURA L MARKET COMMITTEES CONSTITUTED UNDER ANY LAW FOR THE TIME B EING IN FORCE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGR ICULTURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OP ERATION AND APPLICABLE EVEN FOR THE PRIOR YEARS, WE ORDER ACCOR DINGLY. PAGE 4 OF 4 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 31-12- 2009 SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 31 ST DECEMBER, 2009 COPY TO 1. THE ITO WARD-4(1) VISAKHAPATNAM 2. THE ITO WARD-2 SRIKAKULAM 3. THE ITO WARD-1 SRIKAKULAM 4. THE ITO WARD-1 VIZIANAGARAM 5. AGRICULTURAL MARKET COMMITTEE, VISAKHAPATNAM 6. AGRICULTURAL MARKET COMMITTEE, KANCHILI. 7. AGRICULTURAL MARKET COMMITTEE, SOMPETA. 8. AGRICULTURAL MARKET COMMITTEE, AAMADALAVALSA 9. AGRICULTURAL MARKET COMMITTEE, NARASANNAPETA. 10. AGRICULTURAL MARKET COMMITTEE, PATHAPATNAM. 11. AGRICULTURAL MARKET COMMITTEE, KURUPAM 12. AGRICULTURAL MARKET COMMITTEE, BOBBILI 13. THE COMMISSIONER OF INCOME TAX (APPEALS)-I, VISAKH APATNAM. 14.THE COMMISSIONER OF INCOME TAX, VISAKHAPATNAM. 15.THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., VISAK HAPATNAM 16. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM