The ITO, Ward-2, Vizianagaram v. M/s Agricultural Market Committee, Cheepurupalli

ITA 516/VIZ/2009 | 2004-2005
Pronouncement Date: 25-02-2010 | Result: Dismissed

Appeal Details

RSA Number 51625314 RSA 2009
Bench Visakhapatnam
Appeal Number ITA 516/VIZ/2009
Duration Of Justice 3 month(s) 13 day(s)
Appellant The ITO, Ward-2, Vizianagaram
Respondent M/s Agricultural Market Committee, Cheepurupalli
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted DB
Tribunal Order Date 25-02-2010
Date Of Final Hearing 28-01-2010
Next Hearing Date 28-01-2010
Assessment Year 2004-2005
Appeal Filed On 12-11-2009
Judgment Text
PAGE 1 OF 3 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.515/VIZ/2009 2003-04 GIR-A 604 ITO WARD-2 VIZIANAGARAM AMC CHEEPURUPALLI 2 ITA NO.516/VIZ/2009 2004-05 GIR-A 604 ITO WARD-2 VIZIANAGARAM AMC CHEEPURUPALLI 3 ITA NO.517/VIZ/2009 2005-06 GIR-A 604 ITO WARD-2 VIZIANAGARAM AMC CHEEPURUPALLI 4 ITA NO518/VIZ/2009 2006-07 GIR-A 604 ITO WARD-2 VIZIANAGARAM AMC CHEEPURUPALLI APPELLANT BY : SHRI SUBRATA SARKAR CIT-DR RESPONDENT BY : SHRI B. VINAY KUMAR CA ORDER PER B.R.BASKARAN: - THE APPEALS FILED AT THE INSTANCE OF THE REVENUE AR E DIRECTED AGAINST THE COMMON ORDER DATED 28-08-2009 PASSED BY THE LD CIT (A)-I VISAKHAPATNAM AGAINST THE QUANTUM ASSESSMENTS RELATING TO ASSESSM ENT YEARS MENTIONED AGAINST THE EACH OF THE ITA NUMBERS ABOVE. 2. THOUGH THE REVENUE HAS RAISED SEVERAL GROUNDS T HE ONLY ISSUE THAT EMERGES IS WHETHER THE LD CIT (A) IS RIGHT IN HOLD ING THAT THE SECTION 10(26AAB) IS RETROACTIVE IN OPERATION AND THEREBY THE INCOME OF THESE ASSESSEES ARE EXEMPT U/S 10(26AAB) OF THE ACT. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY PERUSED THE RECORD. FOR THE SAKE OF CONVENIENCE WE EXTRACT THE OPERATIVE PART OF THE ORDER OF THE LD CIT (A). 4. I HAVE CAREFULLY EXAMINED THE CONTENTION RAISED BY THE AUTHORISED REPRESENTATIVE OF THE APPELLANT. THE ONL Y ISSUE FOR CONSIDERATION AS URGED BY THE AUTHORISED REPRESENTA TIVE OF THE APPELLANT IS WHETHER INSERTION OF SUB-CLAUSE (26AAB ) TO SEC.10 OF PAGE 2 OF 3 THE ACT WAS A DECLARATIVE ACT TO REMOVE DOUBTS EXIS TING WITH REGARD TO THE EFFECT OF PRE-EXISTING STATUTE AND HE NCE RETROSPECTIVE IN OPERATION. IN THE DECISION RELIED U PON BY THE AUTHORISED REPRESENTATIVE OF THE APPELLANT OF THE H ONBLE JURISDICTION ITAT IT HAS BEEN CONCLUDED AT PARA (1 4) OF THE ORDER AS UNDER: SINCE WE ARE OF THE VIEW THAT THE PROVISIONS OF SEC TION 10(26AAB) OF THE INCOME TAX ACT ARE INTENDED TO BE R ETROACTIVE IN OPERATION HAVING BEEN INSERTED IN THE STATUTE B OOK WITH A VIEW TO CLARIFY THE POSITION OF AGRICULTURAL MARKET COMMITTEES EVEN UNDER PRE-EXISTING STATUTE AND THE FINANCE MINISTER HAVING SPECIFICALLY MENTIONED WHILE REPLY ING TO THE DEBATE IN THE LOK SABHA THAT THERE IS NO INTENTION TO TAX AGRICULTURAL MARKET COMMITTEES THE ENTIRE FEE/INCOM E COLLECTED/RECEIVED HAS TO BE CONSIDERED AS EXEMPT F ROM THE LEVY OF TAX IN WHICH EVEN THE DECISION ON THE ANCILLARY ISSUE IS OF ACADEMIC IMPORTANCE AND THUS NEED NOT BE GONE INTO RESPECTFULLY FOLLOWING THE ABOVE DECISION OF THE HO NBLE JURISDICTIONAL TRIBUNAL IT IS HELD THAT INSERTION OF SUB-CLAUSE (26AAB) TO SEC.10 OF THE ACT IS ESSENTIALLY INTENDE D TO DECLARE THE INTENTION OF THE LEGISLATURE OF NOT TAXING THE INCOME 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. THE SAME CONC LUSION HAVE BEEN REITERATED IN ITA NO.526/VIZAG/2006 AND 12 OTH ER CASES FOR THE ASST. YEAR 2003-04 VIDE ORDER DT. 30-12-08 BY T HE HONBLE JURISDICTIONAL TRIBUNAL. NEEDLESS TO MENTION THAT J UDGEMENT DELIVERED BY THE JURISDICTIONAL TRIBUNAL IS BINDING AND IT IS NECESSARY FOR JUDICIAL UNITY AND DISCIPLINE THAT AL L AUTHORITIES BELOW THE TRIBUNAL MUST ACCEPT AS BINDING THE JUDGE MENT OF THE TRIBUNAL. THESE ARE THE VIEWS OF THE HONBLE HIGH C OURT OF BOMBAY IN THE CASE OF BANK OF BARODA V. H.C. SHRIVA STAVA REPORTED IN 256 ITR 385. ACCORDINGLY THE INCOME I F ANY OF THE APPELLANT IS NOT CHARGEABLE TO TAX. THUS THE LEGAL ISSUE BEING SETTLED IN FAVOUR OF THE APPELLANT BECAUSE OF THE D ECISION OF THE HONBLE JURISDICTIONAL TRIBUNAL I AM NOT INCLINED TO GO INTO THE OTHER GROUNDS OF APPEALS RAISED BY THE APPELLANT. 4. WE NOTICE THAT THE LD CIT(A) HAS FOLLOWED THE DECISION RENDERED BY THIS BENCH ON THE INSTANT ISSUE. IN A BATCH OF APPEALS I.E. IN I.T.A.NO.90/VIZAG/2007 AND BATCH I.T.A.T. VISAKHAPATNAM BENCH VIDE ORDER DT.28.11.2008 HELD THAT THE INCOME OF THE AGRICULTURAL MARKET COMMITTEES IS EXEMPT UNDER SECTION 10(26AAB) OF THE ACT. THE DECISION RENDERED IN THA T CASE IS EXTRACTED BELOW: PAGE 3 OF 3 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 AGRICULTURAL MARKET COMMITTEES CONSTITUTED UNDER ANY LAW FOR THE TIME BEING IN FORCE FOR THE PURPOSES OF REGULATING THE MARKETING OF AGRICULTURAL PRODUCE AND HENCE IT HAS TO BE TREATED AS RETROACTIVE IN OPERATION AND APPLICABLE EVEN FOR THE PRIOR YEARS WE ORDER ACCORDINGLY. 5. SINCE THE LD CIT(A) HAS FOLLOWED THE DECISIO N RENDERED BY THIS BENCH WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDER. 6. IN THE RESULT THE APPEALS FILED BY THE REVE NUE ARE DISMISSED. PRONOUNCED ACCORDINGLY IN THE OPEN COURT ON 25-02-2010. SD/- SD/- (SUNIL KUMAR YADAV) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE:25 TH FEBRUARY 2010 COPY TO 1. THE ITO WARD-2 VIZIANAGARAM 2. AGRICULTURAL MARKET COMMITTEE CHHEEPURUPALLI 3. THE COMMISSIONER OF INCOME TAX (APPEALS) VISAKHAPAT NAM 4. THE COMMISSIONER OF INCOME TAX-1 VISAKHAPATNAM 5. THE DEPARTMENTAL REPRESENTATIVE I.T.A.T. VISAKHAPA TNAM 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM