ACIT, Khammam V. Agricultural Market Committee, Khammam Dist

ITA 476/HYD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3161 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2005-2006
• Appeal Filed On: 29-03-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NIVEDITA BISWAS
• Keywords: Set aside
• Section: 12; 11

Judgement Text

ITA NOS.470 TO 476/H/10 AND 7 OTHER COS- AGRICULTURAL MARKET COMMITTEE. 1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA/CO NO. ASST. YEAR ASSESSEE RESPONDENT ITA 470/H/10 2005-06 ACIT, CIR-I, KHAMMAM AGRICULTURAL MARKET COMMITTEE,BURGAMPAHAD. PAN:AAALA0884E 471/HYD/10 -DO- -DO- AMC,CHARLA. PAN:AAALA0876E 472/HYD/10 -DO- -DO- AMC, MADHIRA-PAN: AAALA0875H 473/HYD/10 -DO- -DO- AMC, KOTHAGUDEM PAN:AAALA0874G 474/HYD/10 -DO- -DO- AMC,SATHUPALLI. PAN:AAALA0857B 475/HYD/10 -DO- -DO- AMC,WYRA. PAN: AAALA0883D 476/HYD/10 -DO- -DO- AMC,DAMMAPETA. PAN:AAALA0879M C.O.24/H/10 IN ITA 470/H/10 -DO- AMC, BURGAMPAHAD. PAN:AAALA0884E ACIT, CIR-I, KHAMMAM C.O.25/H/10 IN ITA 471/H/10 -DO- AMC,CHARLA. PAN:AAALA0876E -DO- C.O.26/H/10 IN ITA 472/H/10 -DO- AMC, MADHIRA- PAN: AAALA0875H -DO- C.O.27/H/10 IN ITA 473/H/10 -DO- AMC, KOTHAGUDEM PAN:AAALA0874G -DO- C.O.28/H/10 IN ITA 474/H/10 -DO- AMC,SATHUPALLI. PAN:AAALA0857B -DO- C.O.29/H/10 IN ITA 475/H/10 -DO- AMC,WYRA. PAN: AAALA0883D -DO- C.O.30/H/10 IN ITA 476/H/10 -DO- AMC,DAMMAPETA. PAN:AAALA0879M -DO- ITA NOS.470 TO 476/H/10 AND 7 OTHER COS- AGRICULTURAL MARKET COMMITTEE. 2 DEPARTMENT BY : SMT. NIVEDITA BISWAS ASSESSEES BY : NONE O R D E R PER BENCH: THESE SEVEN APPEALS BY THE DEPARTMENT AND SEVEN C ROSS OBJECTIONS FILED BY SEVEN DIFFERENT AGRICULTURAL MA RKET COMMITTEES ALL PERTAINING TO THE ASSESSMENT YEAR 2005-06 ARE DIREC TED AGAINST SEPARATE ORDERS OF CIT(A), VIJAYAWADA. SINCE COMMON ISSUES A RE INVOLVED IN ALL THESE APPEALS, THESE ARE HEARD, TAKEN UP TOGETHER AND DIS POSED OFF BY THIS COMBINED ORDER FOR THE SAKE OF CONVENIENCE. 2. FIRST WE WILL TAKE UP THE APPEALS FILED BY THE R EVENUE. WE FIND THAT THE ISSUES RAISED IN THESE APPEALS ARE SQUARELY COV ERED IN FAVOUR OF THE REVENUE BY THE ORDER OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF AGRICULTURE MARKET COMMITTEE, MADHIRA AND OTHERS IN ITA NO.542/HYD/2009 AND OTHERS DATED 26.3.2010 WHEREIN I T WAS HELD THAT THE ASSESSEES ARE NOT ELIGIBLE FOR EXEMPTION UNDER S.10 (26AAB) OF THE ACT, FOR THE ASSESSMENT YEAR UNDER CONSIDERATION WHEREIN THE Y HAVE FOLLOWED THE JUDGMENT OF THE APEX COURT IN THE CASE OF AGRICULT URE PRODUCE MARKET COMMITTEE (APMC), REPORTED IN AGRICULTURAL PRODUCE MARKET COMMITTEE, NARELA VS. CIT & OTHERS (305 ITR 1) (SC). RESPECTFU LLY, FOLLOWING THE SAME, WE HOLD THAT THE ASSESSEE TRUSTS ARE NOT ELIGIBLE FOR EXEMPTION UNDER S. 10(26AAB) OF THE ACT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. ACCORDINGLY, WE ALLOW THE APPEALS OF THE REVENUE. 3. COMING TO THE CROSS OBJECTIONS FILED BY THE ASS ESSEES, THE ASSESSEES RAISED THE FIRST ISSUE THAT CIT(A) ERRED IN DIRECTING THE EXCLUSION OF THE INCOME OF THE ASSESSEE ONLY IN RESPECT OF MARKE T FEES AND LICENSE FEES ON ITA NOS.470 TO 476/H/10 AND 7 OTHER COS- AGRICULTURAL MARKET COMMITTEE. 3 THE GROUND THAT THE ITAT, VIZAKHAPATNAM IN ITS ORD ER IN ITA NO.83 TO 93, 111, 159, 160, 305, 335, 352, 356 TO 359 AND 367 TO 369/VIZAG/2007 DATED 28.11.2008 ALLOWED THE APPEAL ONLY IN RESPECT OF MA RKET FEES AND LICENSE FEES. AS PER THE GROUNDS RAISED BY THE ASSESSEE, T HE CIT (A) OUGHT TO HAVE APPRECIATED THE FACT THAT ITAT, VISAKHAPATNAM, IN I TS ORDER HELD THAT INSERTION OF SEC.10 (26AAB) WAS ESSENTIALLY INTENDE D TO DECLARE THE INTENTION OF THE LEGISLATURE OF NOT TAXING THE INCOME OF AMCS AND ACCORDINGLY SHOULD HAVE HELD THAT THE ENTIRE INCOME OF THE ASSESSEE IS EXEMPT FROM INCOME TAX . WE FIND THAT, THIS GROUND RAISED BY THE ASSESSEES B ECOMES INFRUCTUOUS SINCE, ON SIMILAR ISSUE IN THE REVENUE APPEALS, WE HELD TH AT ASSESSEES ARE NOT ELIGIBLE FOR DEDUCTION UNDER S.10 (26AAB) OF THE AC T. ACCORDINGLY, THIS GROUND IS DISMISSED AS INFRUCTUOUS IN ALL THE CROSS OBJECTIONS FILED BY THE ASSESSEES. 4. WITH REGARD TO THE ALLOWABILITY OF EXEMPTION UN DER S. 11 & 12 OF THE ACT, WE FIND THAT THE ASSESSING OFFICER REJECTE D THE CLAIM OF THE ASSESSEES WITH REGARD TO THE EXEMPTION UNDER S.11 OF THE ACT ON THE REASON THAT THE ASSESSEES ARE NOT HAVING REGISTRATION UNDER S.12A O F THE ACT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. BUT, THERE WA S NO DISCUSSION IN THE ORDER OF THE CIT (A) ON THIS ISSUE AT ALL. THOUGH THERE WAS A DELAY IN FILING OF THESE CROSS OBJECTIONS BY THE ASSESSEE, THE DELAY W AS CAUSED DUE TO THE BONAFIDE REASONS AS EXPLAINED BY THE ASSESSEE IN TH E AFFIDAVIT FILED ALONG WITH THE APPLICATION FOR THE CONDONATION OF DELAY. WE AR E SATISFIED WITH THE REASONS GIVEN BY THE ASSESSEE IN THIS BEHALF AND, A CCORDINGLY, WE ADMIT THE CROSS OBJECTIONS AND SET ASIDE THE ISSUE RELATING T O EXEMPTION UNDER S.11 OF THE ACT FOR FRESH CONSIDERATION TO THE FILE OF THE CIT (A) AFTER GIVING OPPORTUNITY OF HEARING TO THE ASSESSEE. THIS GROUN D RAISED BY THE ASSESSEES IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ITA NOS.470 TO 476/H/10 AND 7 OTHER COS- AGRICULTURAL MARKET COMMITTEE. 4 5. IN THE RESULT, ALL THE APPEALS FILED BY THE REVE NUE ARE ALLOWED WHEREAS THE CROSS OBJECTIONS FILED BY THE ASSESSEES ARE PAR TLY ALLOWED FOR STATISTICAL PURPOSE. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 24--6-2 010. SD/- N.R.S. GANESAN SD/- AKBER BASHA JUDICIAL MEMBER ACCOUNTANT MEMBER. DT/- 24TH JUNE, 2010 COPY FORWARDED TO: 1. 2. ACIT, CIR-I, KHAMMAM. AGRICULTURAL MARKET COMMITTEE, BURGAMPAHAD,CHARLA,MADHIRA,KOTHAGUDEM,SATHUPALLI,WY RA, & DAMMAPETA. 3 4 5 . CIT (A), VIJAYAWADA. CIT, AP, HYDERABAD. DR, ITAT, HYDERABAD. JMR *