Agricultural Market Committee, Unguturu V. ACIT, Eluru

ITA 99/VIZ/2009

• Counselvise Citation: [2009] 115 COUNSELVISE.COM (IT) 0143 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2009
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2003-2004
• Appeal Filed On: 02-03-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SUBRATA SARKAR

Judgement Text

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.101/VIZAG/2009 2003-04 AAAALA 0351 L AGRIC ULTURAL MARKET COMMITTEE, ATTILI ITO, WARD-1, TANUKU. 2 ITA NO.117/VIZAG/2009 2003-04 AAKFA 8420 C AGRICU LTURAL MARKET COMMITTEE, AKIVIDU ACIT, CIRCLE-1, ELURU. 3 ITA NO.118/VIZAG/2009 2004-05 AAKFA 8420 C AGRICU LTURAL MARKET COMMITTEE, AKIVIDU ACIT, CIRCLE-1, ELURU. 4 ITA NO.96/VIZAG/2009 2003-04 AAALA 0379 G AGRICUL TURAL MARKET COMMITTEE, BHIMADOLE ACIT, CIRCLE-1, ELURU. 5 ITA NO.102/VIZAG/2009 2004-05 AAALA 0351 L AGRICU LTURAL MARKET COMMITTEE, ATTILI ITO, WARD-1, TANUKU. 6 ITA NO.141/VIZAG/2009 2003-04 AAALA 0401 B AGRICU LTURAL MARKET COMMITTEE, BHIMAVARAM ACIT, CIRCLE-1, ELURU. 7 ITA NO.142/VIZAG/2009 2004-05 AAALA 0401 B AGRICU LTURAL MARKET COMMITTEE, BHIMAVARAM ACIT, CIRCLE-1, ELURU. 8 ITA NO.97/VIZAG/2009 2003-04 AAALA 0350 M AGRICU LTURAL MARKET COMMITTEE, CHINTALAPUDI ACIT, CIRCLE-1, ELURU. 9 ITA NO.98/VIZAG/2009 2004-05 AAALA 0350 M AGRICU LTURAL MARKET COMMITTEE, CHINTALAPUDI ACIT, CIRCLE-1, ELURU. 10 ITA NO.139/VIZAG/2009 2003-04 AAALA 0359 C AGRICULTURAL MARKET COMMITTEE, KOVVUR ITO, WARD-2, TANUKU. 11 ITA NO.140/VIZAG/2009 2004-05 AAALA 0359 C AGRICULTURAL MARKET COMMITTEE, KOVVUR ITO, WARD-2, TANUKU. 12 ITA NO.103/VIZAG/2009 2003-04 AAALA 0389 E AGRICULTURAL MARKET COMMITTEE, NARASAPUR ACIT, CIRCLE-1, ELURU. 13 ITA NO.104/VIZAG/2009 2004-05 AAALA 0389 E AGRICULTURAL MARKET COMMITTEE, NARASAPUR ACIT, CIRCLE-1, ELURU. 14 ITA NO.107/VIZAG/2009 2003-04 AAALA 0440 J AGRICULTURAL MARKET COMMITTEE, PALAKOL ACIT, CIRCLE-1, ELURU. 15 ITA NO.108/VIZAG/2009 2004-05 AAALA 0440 J AGRICULTURAL MARKET COMMITTEE, PALAKOL ACIT, CIRCLE-1, ELURU. 16 ITA NO.105/VIZAG/2009 2003-04 AAALA 0388 F AGRICULTURAL MARKET COMMITTEE, PENUGONDA ITO, WARD-1, TANUKU. 17 ITA NO.106/VIZAG/2009 2004-05 AAALA 0388 F AGRICULTURAL MARKET COMMITTEE, PENUGONDA ITO, WARD-1, TANUKU. 18 ITA NO.149/VIZAG/2009 2003-04 AAALA 0358 D AGRICULTURAL MARKET COMMITTEE, TGUDEM ITO, WARD-1, TADEPALLIGUDEM 19 ITA NO.150/VIZAG/2009 2004-05 AAALA 0358 D AGRICULTURAL MARKET COMMITTEE, TGUDEM ITO, WARD-1, TADEPALLIGUDEM 2 20 ITA NO.95/VIZAG/2009 2004-05 AAALA 0352 K AGRICULTURAL MARKET COMMITTEE, TANUKU ITO, WARD-2, TANUKU. 21 ITA NO.99/VIZAG/2009 2003-04 AAALA 0357 N AGRICULTURAL MARKET COMMITTEE, UNGUTURU ACIT, CIRCLE-1, ELURU. 22 ITA NO.100/VIZAG/2009 2004-05 AAALA 0357 N AGRICULTURAL MARKET COMMITTEE, UNGUTURU ACIT, CIRCLE-1, ELURU. APPELLANTS BY: SHRI G.V.N. HARI, CA RESPONDENTS BY: SHRI SUBRATA SARKAR, CIT-D R ORDER PER BENCH: - ALL THE APPEALS OF THESE ASSESSEES ARE DIRE CTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), RA JAHMUNDRY AGAINST THE QUANTUM ASSESSMENT RELATING TO THE ASSESSMENT YEARS 2003-04 OR/AND 2004-05. 2. ALL THESE APPEALS ARE BARRED BY LIMITATION F OR A PERIOD RANGING FROM 260 DAYS TO 310 DAYS. HAVING REGARD TO THE SUBMISSIONS MADE BY THESE ASSESSEES IN THEIR RESPECTIVE PETITION SEEKING CONDONATION OF DELAY, W E CONDONE THE DELAY IN FILING THESE APPEALS AND TAKE UP THEM FOR HEARING. 3. THOUGH ALL THE ASSESSEES HAVE RAISED SEVERAL GRO UNDS, THE CORE ISSUE, WHICH WAS PRESSED FOR CONSIDERATION, WAS WITH REGAR D TO THE CLAIM OF EXEMPTION UNDER SECTION 10(26AAB) OF THE ACT. BY PLACING REL IANCE ON THE ORDER DATED 28- 11-2008 PASSED BY THIS BENCH IN I.T.A.NO.90/VIZAG/20 07 AND BATCH, IT WAS SUBMITTED THAT THE AMENDMENT TO SECTION 10(26AAB) I S 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 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 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 3 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 ACCOR DINGLY. SINCE THE LEARNED COUNSEL APPEARING ON BEHALF OF TH E ASSESSEES MAINLY PRESSED FOR CONSIDERATION THE SAID CONCERNING EXEMP TION U/S 20(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. 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 ASSE SSEE ARE PARTLY ALLOWED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 23-9-2009 SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, 23 RD SEPTEMBER, 2009 4 COPY TO 1. AGRICULTURAL MARKET COMMITTEE, ATTILI. 2. AGRICULTURAL MARKET COMMITTEE, AKIVIDU. 3. AGRICULTURAL MARKET COMMITTEE, BHIMADOLU. 4. AGRICULTURAL MARKET COMMITTEE, BHIMAVARAM. 5. AGRICULTURAL MARKET COMMITTEE, CHINTALAPUDI. 6. AGRICULTURAL MARKET COMMITTEE, KOVVURU. 7. AGRICULTURAL MARKET COMMITTEE, NARSAPUR. 8. AGRICULTURAL MARKET COMMITTEE, PALKOL. 9. AGRICULTURAL MARKET COMMITTEE, PENUGONDA. 10. AGRICULTURAL MARKET COMMITTEE, TADEPALLIGUDEM. 11. AGRICULTURAL MARKET COMMITTEE, TANUKU. 12. AGRICULTURAL MARKET COMMITTEE, UGUTURU. 13. ACIT, CIRCLE-1, ELURU. 14. ITO, WARD-1, TANUKU. 15. ITO, WARD-1, TADEPALLIGUDEM. 16. ITO, WARD-2, TANUKU. 11. COMMISSIONER OF INCOME TAX (APPEALS), RAJAHMUND RY 17. COMMISSIONER OF INCOME TAX, RAJAHMUNDRY 13.THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., VISAK HAPATNAM 14. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM