The ITO, Ward-1, Anakapalle V. M/s Agricultural Market Committee, Chintapalli

ITA 300/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 1742 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2009
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 01-06-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G S S GOPINATH
• Assessee Lawyers: B V RAO
• Section: 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM (SMC) BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER SL. NO. CASE NO. ASST. YEAR P.A.N. /GIR NO. APPELLANTS RESPONDENTS 1. ITA NOS.260&261/VIZAG/2009 2004-05 & 2005-06 A-607 ITO, WARD-2, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, KOTHAVALASA 2. ITA NOS. 298,299&300/VIZAG/2009 2004-05, 2005-06 & 2006-07 AABAT 0424H ITO, WARD-1, ANAKAPALLE AGRICULTURAL MARKET COMMITTEE, CHINTAPALLI 3. ITA NO.82/VIZAG/2009 2005-06 A-602 ITO,WARD-1, VIZIANAGARAM AGRICULTURAL MARKET COMMITTEE, KURUPAM 4. CO NOS.40&41/VIZIAG/2009 2004-05 & 2005-06 A-607 AGRICULTURAL MARKET COMMITTEE, KOTHAVALASA ITO, WARD-2, VIZIANAGARAM 5. CO NOS. 42,43&44/VIZAG/2009 2004- 05, 2005-06 & 2006-07 AABAT 0424H AGRICULTURAL MARKET COMMITTEE, CHINTAPALLI ITO, WARD-1, ANAKAPALLE 6. CO NO.17/VIZAG/2009 2005-06 A-602 AGRICULTURAL MARKET COMMITTEE, KURUPAM ITO,WARD-1, VIZIANAGARAM APPELLANT BY: SHRI G.S.S. GOPINATH, DR RESPONDENT BY: SHRI B.V. RAO, CA ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- ALL THESE APPEALS ARE PREFERRED BY THE REVENUE AGA INST THE RESPECTIVE ORDER OF THE CIT(A). THE ASSESSEE HAS ALSO FILED T HE CROSS OBJECTIONS IN SUPPORT OF THE ORDER OF THE CIT(A). SINCE THE APPE ALS AND THE CROSS OBJECTIONS WERE HEARD TOGETHER, THESE ARE BEING DIS POSED OFF THROUGH THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2 2. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS OF APPEAL, BUT THE CORE ISSUE INVOLVED THEREIN IS WITH REGARD TO THE CLAIM OF EXEMPTION U/S 10(26AAB) OF THE ACT. BY PLACING RELIANCE ON THE ORDER DATED 28.11.2008 PASSED BY THIS BENCH IN ITA NO.90/VIZAG/2007 AND BATCH, IT WAS SUB MITTED THAT THE AMENDMENT TO SECTION 10(26AAB) IS CLARIFICATORY IN NATURE AND THEREFORE RETROACTIVE IN OPERATION IN THE LIGHT OF THE REPLIE S 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 AC T, THE INCOME OF THE AGRICULTURAL MARKET COMMITTEE, WHICH WAS ORIGINALLY CLAIMED TO BE EXEMPT UNDER SECTION 10(20) OF THE ACT IS OTHERWISE DESERV E TO BE TREATED AS NOT TAXABLE BY VIRTUE OF SECTION 10(26AAB) OF THE ACT. 3. IN A BATCH OF APPEALS, I.E., IN ITA NO.90/VIZAG/ 2007 AND BATCH, I.T.A.T., VISAKHAPATNAM BENCH, VIDE ORDER DATED 28. 11.2008, HELD THAT THE INCOME OF THE AGRICULTURAL MARKET COMMITTEES IS EXE MPT UNDER SECTION 10(26AAB) OF THE ACT. THE DECISION RENDERED IN THA T CASE IS EXTRACTED BELOW: HAVING REGARD TO THE CIRCUMSTANCES OF THE CASE, W E ARE OF THE FIRM VIEW THAT THE INSERTION OF SUB-CLAUSE (26A AB) TO SECTION 10 OF THE INCOME TAX ACT IS ESSENTIALLY INTENDED TO DE CLARE 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 OPERAT ION AND APPLICABLE EVEN FOR THE PRIOR YEARS, WE ORDER ACCORDINGLY. 4. THE CIT(A) HAS DECIDED THE ISSUE FOLLOWING THE O RDER OF THE TRIBUNAL WHICH HAS NOT BEEN REVERSED SO FAR. WE THEREFORE, FIND NO INFIRMITY THEREIN. 5. THE CROSS OBJECTIONS ARE FILED IN SUPPORT OF THE ORDER OF THE CIT(A). 6. SINCE WE HAVE CONFIRMED THE ORDER OF CIT(A) FIND ING NO MERIT IN THE REVENUES APPEAL, THE CO OF THE ASSESSEE BECOMES IN FRUCTUOUS. WE ACCORDINGLY DISMISS THE SAME. 3 7. IN THE RESULT, THE APPEALS OF THE REVENUE AS WEL L AS C.OS. ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 6.10.2009 SD/- (SUNIL KUMAR YADAV) JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 6 TH OCTOBER, 2009 COPY TO 1 THE ITO, WARD-1, ANAKAPALLE 2 THE ITO, WARD-1, VIZIANAGARAM 3 THE ITO, WARD-2, VIZIANAGARAM 4 AGRICULTURAL MARKET COMMITTEE, KOTHAVALASA 5 AGRICULTURAL MARKET COMMITTEE, CHINTAPALLI 6 AGRICULTURAL MARKET COMMITTEE, KURUPAM 7 THE CIT, VISAKHAPATNAM 8 THE CIT(A)-I, VISAKHAPATNAM 9 THE DR, ITAT, VISAKHAPATNAM. 10 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM