Agricultural Market Committee, Hyderabad V. Director of Income Tax (Exemptions), Hyderabad

ITA 977/HYD/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 69805 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2013
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 12-06-2013
• Court: TRIBUNAL
• Department Lawyers: C H GOPINATHCIT
• Assessee Lawyers: S RAMA RAO
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. APPELLANT RESPONDENT 9 76 /HYD/2013 AGRICULTURAL MARKET COMMITTEE, DHARMARAM, KARIMNAGAR DIST PIN 505 416 (PAN AAALA 0260 G) DIRECTOR OF INCOME - TAX (EXEMPTION) HYDERABAD 977/HYD/2013 AGRICULTURAL MARKET COMMITTEE, PEDDAPALLI, KARIMNAGAR DIST PIN 505 172 (PAN AAALA 0261 H) DIRECTOR OF INCOME - TAX (EXEMPTION) HYDERABAD APPELLANTS BY : SHRI S.RAMA RAO RESPONDENT BY : SHRI C.H.GOPINATH(CIT - DR) DATE OF HEARING 25.09.2013 DATE OF PRONOUNCEMENT 25.09.2013 O R D E R PER ASHA VIJAYARAGHAVAN , JUDICIAL MEMBER: THESE APPEALS BY THE ASSESSEES ARE DIRECTED SEPARATE ORDERS OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD, BOTH DATED 13.3.2013, REJECTING THE APPLICATIONS OF THE ASSESSEE - AGRICULTURAL MARKET COMMITTEES FOR REGISTRATION UNDER S.12AA OF TH E ACT, WITH EFFECT FROM THE DATES OF THEIR INCEPTION. SINCE THE FACTUAL BACKGROUND AND ISSUES INVOLVED IN THESE APPEALS ARE COMMON, THESE ITA NO.9 76 - 77 /HYD/1 3 AGRICULTURAL MARKET COMMITTEE, DHARMARAM & ANR 2 APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF, WITH THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. AT THE OUTSET, IT MAY BE NOTED THAT THERE WA S A DELAY OF 9 DAYS IN THE CASE OF AGRICULTURAL MARKET COMMITTEE, DHARMARAM AND 14 DAYS IN THE CASE OF AGRICULTURAL MARKET COMMITTEE PADDAPALLI, IN FILING THEIR RESPECTIVE APPEALS BEFORE THIS TRIBUNAL. LEARNED C OUNSEL FOR THE ASSESSEE HAS FILED PETITIONS, ACCOMPANIED BY AFFIDAVITS OF THE SECRETARIES OF THE RESPECTIVE AGRICULTURAL MARKET COMMITTEES. IT IS STATED IN THE CONDONATION PETITIONS THAT THE DELAY IN FILING THE APPEALS HAS OCCURRED ON ACCOUNT OF HEAVY PROC UREMENT OPERATIONS DURING THE MONTH OF MAY, 2013. CONSIDERING THE MARGINAL NATURE OF DELAY AND THE REASON EXPLAINED BY THE APPELLANTS FOR THE SAME, WE ARE INCLINED TO CONDONE THE DELAY. WE ACCORDINGLY CONDONE THE DELAY IN THE FILING OF THESE FOUR APPEALS AND PROCEED TO DISPOSE OF THESE APPEALS AS WELL ON MERITS. 3 IN ALL THESE MATTERS, ASSESSEES WERE IN APPEAL BEFORE THE TRIBUNAL EARLIER, AGGRIEVED BY THE ACTION OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) IN NOT CONDONING THE DELAY IN THE FILING OF THE A PPLICATIONS FOR REGISTRATION, AND CONSEQUENTLY NOT GRANTING REGISTRATION AS PRAYED FOR BY THE ASSESSEE - COMMITTEES IN THEIR RESPECTIVE APPLICATIONS, VIZ. FROM THE DATES OF THEIR INCEPTION INSTEAD OF FROM THE FIRST DAY OF THE FINANCIAL YEAR IN WHICH APPLICA TION FOR REGISTRATION WAS MADE. THE TRIBUNAL WHILE DECIDING THE APPEALS, DIRECTED THE DIRECTOR OF INCOME - TAX(EXEMPTION) TO CONSIDER THE ISSUE RELATING TO CONDONATION OF DELAY, AFTER GIVING OPPORTUNITY TO THE ASSESSEES. THE DIRECTOR OF INCOME - TAX(EXEMPTI ON), IN PURSUANCE OF THE SAID EARLIER ORDERS OF THE TRIBUNAL, ON HEARING THE PARTIES, BY THE ORDERS IMPUGNED IN THESE APPEALS, ONCE AGAIN DID NOT CONDONE THE DELAY, AND ACCORDINGLY REJECTED THE APPLICATIONS, WITHOUT GOING INTO THE MERITS THEREOF. AGGRIEVE D BY THE SAID ORDERS OF THE DIRECTOR OF INCOME - TAX(EXEMPTION), ASSESSEES ARE IN APPEAL BEFORE US. ITA NO.9 76 - 77 /HYD/1 3 AGRICULTURAL MARKET COMMITTEE, DHARMARAM & ANR 3 4 . THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT REGISTRATION HAS TO BE GRANTED TO THE ASSESSEES, AS SOUGHT FOR BY THEM IN THEIR RESPECTIVE APPLICATIONS FIELD FOR REGISTRATION UNDER S.12AA OF THE ACT. IN THIS BEHALF, HE PLACED RELIANCE ON THE DECISION OF THE TRIBUNAL DATED 30.3.2007 IN THE CASES OF AGRICULTURAL MARKET COMMITTEE, ENUMAMULA WARANGAL DIST AND ELEVEN OTHERS (1130/HYD/2004 AND OTHERS) AND FURNISHED A COPY THEREOF TO US. THE TRIBUNAL IN THAT CASE FOUND THE REASON PUT FORTH BY THE ASSESSEES FOR THE DELAY IN THE F ILING OF THE APPLICATIONS FOR REGISTRATION TO BE REASONABLE AND DIRECTED THE DIRECTOR OF INCOME - TAX(EXEMPTION) TO CONDONE THE SAME AND DISPOSE OF THE APPLICATIONS ON MERITS. IN THE CIRCUMSTANCES, IT IS PLEADED ON BEHALF OF THE ASSESSEES BY THE LEARNED COU NSEL THAT THE DELAY IN FILING OF THE APPLICATIONS SHOULD BE CONDONED AND REGISTRATION SHOULD BE GRANTED AS PRAYED BY THE ASSESSEES IN THEIR RESPECTIVE APPLICATIONS. 5 . THE LEARNED DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND, STRONGLY SUPPORTED THE ORDERS OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) AND SUBMITTED THAT REJECTION OF THE APPLICATIONS FOR REGISTRATION IS IN ORDER. 6 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE DIRECTOR OF INCOME - TAX(EXEMPTION) IN THESE MATTERS IN THE LIGHT OF THE DECISION OF THE TRIBUNAL RELIED UPON BY THE LEARNED COUNSEL FOR THE ASSESSEES. THE REASON FOR THE DELAY IN FILING THE APPLICATIONS FOR REGISTRATION IN THESE MATTES, AS EXPLAINED BY THE ASSESSEES, IS THE SAME AS THE ONE CONSIDERED BY THE TRIBUNAL IN THE CASES OF AGRICULTURAL MARKET COMMITTEE, ENAMAMULA AND OTHERS, IN ITS ORDER DATED 30.3.2007 IN ITA NO.1130/HYD/2004 AND OTHERS, RELIED UPON BY THE LEARNED COUNSEL FOR THE ASSESSEE. THE TRIBUNAL IN THAT CASE HAS CONDONED THE DELAY AND DIRECTE D THE DIRECTOR OF INCOME - TAX(EXEMPTION) TO DEAL WITH THE APPLICATIONS FOR REGISTRATIONS ON MERIT, FOLLOWING DECISIONS OF THE TRIBUNAL IN THE FOLLOWING THE EARLIER DECISION OF THE TRIBUNAL DATED 28.2.2007 IN ITA ITA NO.9 76 - 77 /HYD/1 3 AGRICULTURAL MARKET COMMITTEE, DHARMARAM & ANR 4 NO.556/HYD/2005 IN AGRICULTURAL MARKET COMMI TTEE, KARIMNAGAR, WHEREIN DELHI BENCH DECISION OF THE TRIBUNAL IN MARKET COMMITTEE V/S. CIT(2005)3 SOT 98(DEL); GUJARAT MARITIME BOARD V/S. CIT(94 TTJ 1103)(AHD); AND AGRICULTURAL PRODUCE AND MARKET COMMITTEE, TELHARA V/S. CT(97 TTJ 165(NAG), HAVE BEEN FOL LOWED. THE RELEVANT OBSERVATIONS OF THE TRIBUNAL VIDE PARAS 3 AND 4 OF THE SAID ORDER DATED 30.3.2007, ARE EXTRACTED BELOW - 3. IT IS AGREED BY THE PARTIES THAT EXACTLY IDENTICAL ISSUE HAD COME UP BEFORE THE TRIBUNAL IN THE CA S E OF A G RICULTU R AL MARKET C OMMITTEE, KARIMNAGAR IN ITA NO.556/HYD05 DATED 28.2.2007.. IDENTICAL ARE THE FACTS IN ALL TH E APPEALS BEFORE US AND BASED ON TH E R EASONING GIVEN IN THE ABOVE ORDER IN THESE ASSESSEES ALSO, THE DI IS DIRE C TED TO GRANT REGISTRATION TO THE ASSESSEES UNDER S. 12AA OF THE ACT. 4. BEFORE PARTING, IT MAY BE NO T ED THAT TEN OUT O F THE TWELVE APPEALS ARE BARRED BY LIMITATION. PETITION E RS PRAYING FOR CON D ONATION OF DELAY HAVE BEEN FILED. THE DELAY RANGES FROM MORE THAN 300 DAYS TO MORE THAN 700 DAYS. THE DELAY IS STA T ED TO HAVE OCCURRED ON ACCOUNT OF THE FACT THAT INITIALLY, THE ASSESSEE S HAD FILED WRIT PETITION S BEFORE THE HONBLE HIGH COU R T WHEN ASSESSMENT PROC E EDIN G S W E RE INITIATED BY T H E HE REVENUE AUTHORITIES, THEREBY DENYING THEM THE EX E MPTION UN D ER S .10(2 0 ) OF THE AC T. THESES PETITIONS WERE DIS MIS SED BY THE HIGH COURT ON THE GROUND OF IT BEIN G PREMATURE. SUBSEQUENTLY, THE GOVERNMENT OF ANDHRA PRADESH ISSUED A CIRCULAR TO THE COMMITTEE DIRECTING TH E M TO CLAIM EXEMPTION UNDER S.10(20) BEFORE TH E ASSESSING AUTHORITY. SUB S EQUENTLY, A CIRCULAR DATED 13.2.2007 WAS ISSUED TO CLAIM EXEMPTION UNDER S.11 OF THE AC T. IT IS STATED THAT THE SECRETARY OF EACH COMMITTEES IS A SUBORDINATE OFFICIAL WORKING U N D ER THE COMMISSION E R AND DIR E CTOR OF MARK E TING, GOVE RNMENT OF AN D HRA PRADESH, AND HENCE, IS BOUND BY THE IN S TRU CT IONS ISSUED BY THE SAID AUTHORITY. SIN C E THE INSTRUCTION CAME LATE, THE APPLI C ATION S FOR R E GI S TRATION WERE ALSO DELAYED AND HENCE, THE DELAY IN FILIN G THESE APPEALS AS WELL. SIN C E THERE WAS A REA SONABLE CAUSE FOR THE DELAY, WE HAVE CON D ONED THE SAME ADMITTED THE APPEALS. BEFORE US, THE LEARNED AUTHORISED REPRESENTATIVE PLEADED THAT THE REASON FOR DELAY IN THE FILING OF THE APPLICATIONS FOR REGISTRATION WAS THE SAME AS THE ONE CONSIDERED BY THE TRIBUNAL IN ITS ORDER CITED SUPRA. TAKING NOTE OF THE ABOVE POSITION, IN THE CASE OF ITA NOS.925/HYD/13 AND 13 OTHERS IN THE CASE OF ITA NO.9 76 - 77 /HYD/1 3 AGRICULTURAL MARKET COMMITTEE, DHARMARAM & ANR 5 AGRICULTURAL MARKET COMMITTEE, SULTANABAD (KARIMNAGAR DIST.) AND OTHERS, SIMILAR VIEW HAS BEEN TAKEN BY THE TRIBUNA L VIDE DATED 23.9.2013, TO WHICH BOTH OF US ARE PARTIES, THEREFORE, CONSISTENT WITH THE VIEW TAKEN BY THE COORDINATE BENCHES OF THE TRIBUNAL IN SIMILAR MATTERS IN IDENTICAL CIRCUMSTANCES, IN THESE MATTERS ALSO, WE DIRECT THE DIRECTOR OF INCOME - TAX(EXEMPTIO N) TO CONDONE THE DELAY AND PASS APPROPRIATE ORDERS GRANTING REGISTRATION TO THE ASSESSEES HEREIN UNDER S.12AA OF THE ACT, AFTER GIVING REASONABLE OF HEARING TO THE ASSESSEE S. 7 . IN THE RESULT, THESE TW O APPEALS ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 2 5 .9.2013 SD/ - SD/ - (CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DT/ - 2 5 TH SEPTEMBER, 2013 COPY FORWARDED TO: 1. AGRICULTURAL MARKET COMMITTEE, DHARMARAM (KARIMNAGAR DIST PIN 505 416) C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3 - 6 - 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2. AGRICULTURAL MARKET COMMITTEE, HUSUNABAD, (KARIMNAGAR DIST PIN 505 172) C/O. SHRI S.RAMA RAO,FLAT NO.102, SHIRYA'S ELEGANCE, NO.3 - 6 - 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 3 DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 4 DY. DIRECTOR OF INCOME - TAX(EXEMPTION) HYDERABAD 5 . DEPARTMENTAL REPRESENTATIVE ITAT HYDERABAD B.V.S