The Adoni Groundnut, Cotton And Kappas - Commission Agents Association and C.Veerabhadra Goud V. Union of India, Rep by its Secretary, Central Board of Direct Taxes (CBDT) and Ministry of Finance (Dept of Revenue), New Delhi and The Principal Commissioner of Income Tax, Aayakar Bhavan, KT Road Tirupati, Tirupati District, AP - 517 507

WP/5108/2023

AI Insights

The case involves a writ petition filed by the Adoni Groundnut, Cotton And Kappas - Commission Agents Association and another petitioner against the Union of India, represented by the CBDT, challenging the inaction of the respondents in not considering their representation dated 01.12.2022. The representation requested clarification under Section 194Q(3) of the Income Tax Act, 1961, to exempt commission agents licensed under Section 7 of the Markets Act from the purview of Section 194Q of the Income Tax Act, 1961. The petitioners argued that the respondents' inaction was illegal, arbitrary, improper, and unconstitutional. The court's decision was primarily procedural, directing the respondents to consider the representation and make a decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 822429 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 27-07-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act 1961, Markets Act
• Result in Favour of: Applicant
• Court: HIGH COURT
• Department Lawyers: M
• Assessee Lawyers: N BABU
• Keywords: Commission Agents; Exemption; Income Tax; Legal inaction; Writ of Mandamus
• Section: 7; 194Q(3)

Judgement Text

"...PETITIONER(S) 2. PRESENT THE HONOURABLE SRI JUSTICE U.DURGA PRASAD RAO ANO THE HONOURABLE SMT JUSTICE VENKATA JYOTHIRMAI PRATAPA WRIT PETITION NO: 5108 OF 2023 IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) THURSDAY. THE TWENTY SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY THREE AND 1. Union of India,. Rep by its Secretary, Central Board of Direct Taxes (CBDT), ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an order or direction, more particularly, one in the nature of writ of Mandamus a) Declaring the inaction of respondents in not considering the representation of the petitioners dated 01.12.2022 whereunder it was requested to issue clarification by exercising its power under Section 194Q(3) of the Income Tax Act 1961, exempting Commission Agents licenced under Section 7 of the Markets Act from the purview of Section 194Q of the Income Tax Act 1961, as Illegal, arbitrary, improper and unconstitutional. b)Consequently to direct the respondents to consider the representation of the petitioners dated 01 12 2022 and to issue clarification under Section 194Q(3) of the Income Tax Act 1961 exempting Commission Agents licenced under Section 7 of the Markets Act from the purview of Section 194Q of the income Tax Act 1961. c) Or alternatively declare that the Section 194Q of the IT Act 1961 has no application to the Commission Agents carrying on business in notified Market areas in respect of notified agricultural produce, as done in the case of stock exchange brokers, who trade in securities and commodities through the stock exchanges. Ministry of Finance (Dept of Revenue), New Delhi. The Principal Commissioner of Income Tax, Aayakar. Bhavan, KT Road Tirupati, Tirupati District. AP - 517 507 Between: 1. Tlie Adoni Groundnut, Cotton And Kappas - Commission Agents Association ^egd.No.116/1978), Adoni - 518301, Kurnool District, AP, Rep by its. yea Gouda, S/o Jambulinganna Gouda, aged about 52 2. C.Veerabhadra Goud, S/o Jambulinganna Gouda, aged about 52 year. Commission Agent. Shop No.3. Agricultural Market committee, Adoni, Kurnool district, AP. ; (g» lA NQ: 1 OF 2023 • th Section 151 CPC praying that in the circumstances stated rn the affidavit filed in support of the petition, the High Court may be pleased, to dLTJSi forthwith consider the representation of the petitioners dated 01.12.2022. whereunder it was requested to exempt commission agents licenced under Section 7 of the Markets Act from the purview of Section 194Q of interestof^usVice^'^^ exercising it power under Section 1940(3), in the Counseirfor the Petitioner(s): SRI. N BHARAT BABU Counsel for the Respondents : MZS M KIRANMAYEE. SC FOR INCOMETAX The Court made the following: ORDER WRIT PETITION No.5108 of 2023 ORDER; (per UDPR, J) The petitioners’ association seeks following reliefs in the form of writ of mandamus: ii HON’BLE SRI JUSTICE U.DURGA PRASAD RAO AND HON’BLE SMT. JUSTICE VENKATA JYOTHIRMAIPRATAPA I Ii I f ii i “a) Declaring the inaction of respondents in not considering the representation of the petitioners dated 01.12.2022 whereunder it was requested to issue clarification ty exercising its power under Section 194Q(3) of the Income Tax Act, 1961 exempting Commission Agents licensed under Section 7 of the Markets Act from the purview of Section 194Q of the Income Tax Act 1961 as illegal, arbitrary, improper and unconstitutional; b) Consequently to direct the respondents to consider the representation of the petitioners dated 01.12.2022 and to issue clarification under Section 194Q(3) of the Income Tax Act, 1961 exempting Commission Agents licensed under Section 7 of the Markets Act from the purview of Section 194Q of the Income Tax Act, 1961; c) Or alternatively declare that the Section 194Q of the IT Act, 1961 has no application to the Commission Agents carrying on business in notified Market areas in respect of notified agricultural produce, as done in the case of stock 2 2. 3. 4. Learned standing counsel filed counter and opposed the writ petition. She further sought to argue that on the. merits of the petitioners’ representation which we must say are not going to consider at this stage ease^as the prayer in the writ petition is only The submission of learned counsel for petitioner is that the petitioners’ association has submitted a representation dated 01.12.2022 to.the 1“ respondent - CBDT to consider their case and pass an appropriate order and. the same is pending consideration before the said/authority and to the information of the petitioners, no order has yet been passed. Thus, learned counsel seeks indulgence of this Court only to the extent of giving direction to the respondent to consider their representation/ and pass an appropriate order in accordance with the relevant laws. exchange brokers, who trade in securities and commodities through the stock exchanges; d) and pass such other order or orders as this Hon’ble Court may deem fit and proper.” Heard Sri P.Gangaiah Naidu, learned Senior Counsel, representing on behalf of the learned counsel for petitioner on record and learned standing counsel representing for the respondents. 3 merits as per the applicable laws. Having regard to the innocuous reliefs sought for, without 5. going into the merits of the petitioners’ representation, we direct the respondent to consider the representation dated 01.12,2022 said to be submitted by the petitioners’ association and pass an appropriate order in accordance with the governing law and rules at the earliest but not later than four weeks from the date of receipt of copy of this order and communi cate to the petitioner. With the above direction, this writ petition is disposed of 6. accordingly. No costs. As a sequel, interlocutory applications pending, if any, in this case shall stand closed. //TRUE COPY// 2. .i; s representation and pass the order on ■ To, 1. SD/- P.U.V.BHASKARA RAO ASSISTANT REGIST^R^ ^^SECTIONWHCER The Secretary. Central Board of Direct Taxes (CBDT), Ministry of Finance (Dept of Revenue), Union of India, New Delhi. The Principal Commissioner of Income Tax, Aayakar Bhavan KT Road Tirupati, Tirupati District, AP - 517 507 3. One CC to SRI. N BHARAT BABU Advocate [OPUCl 4. One CC to M/S. M KIRANMAYEE. SC FOR INCOMETAX [OPUC] 5. Two CD Copies MSR Sri to give a direction to the respondent to consider the HIGH COURT DATED:27/07/2023 ORDER WP.No.5108 of 2023 6 DISPOSING OF THE WP WITHOUT COSTS il fe. 3 0 SEP 2Gz3 "