In the Income Tax Appellate Tribunal Visakhapatnam Bench, Visakhapatnam Before: Shri Sunil Kumar Yadav, Judicial Member and Sh
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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. Case No. Asst. P.A.N.No. Appellants Respondents No. Year 1 ITA No.101/Vizag/2009 2003-04 AAAALA 0351 L Agricultural Market ITO, Ward-1, Committee, Attili Tanuku. 2 ITA No.117/Vizag/2009 2003-04 AAKFA 8420 C Agricultural Market ACIT, circle-1, Committee, Akividu Eluru. 3 ITA No.118/Vizag/2009 2004-05 AAKFA 8420 C Agricultural Market ACIT, circle-1, Committee, Akividu Eluru. 4 ITA No.96/Vizag/2009 2003-04 AAALA 0379 G Agricultural Market ACIT, circle-1, Committee, Bhimadole Eluru. 5 ITA No.102/Vizag/2009 2004-05 AAALA 0351 L Agricultural Market ITO, Ward-1, Committee, Attili Tanuku. 6 ITA No.141/Vizag/2009 2003-04 AAALA 0401 B Agricultural Market ACIT, circle-1, Committee, Eluru. Bhimavaram 7 ITA No.142/Vizag/2009 2004-05 AAALA 0401 B Agricultural Market ACIT, circle-1, Committee, Eluru. Bhimavaram 8 ITA No.97/Vizag/2009 2003-04 AAALA 0350 M Agricultural Market ACIT, circle-1, Committee, Eluru. Chintalapudi 9 ITA No.98/Vizag/2009 2004-05 AAALA 0350 M Agricultural Market ACIT, circle-1, Committee, Eluru. Chintalapudi 10 ITA No.139/Vizag/2009 2003-04 AAALA 0359 C Agricultural Market ITO, Ward-2, Committee, Kovvur Tanuku. 11 ITA No.140/Vizag/2009 2004-05 AAALA 0359 C Agricultural Market ITO, Ward-2, Committee, Kovvur Tanuku. 12 ITA No.103/Vizag/2009 2003-04 AAALA 0389 E Agricultural Market ACIT, circle-1, Committee, Narasapur Eluru. 13 ITA No.104/Vizag/2009 2004-05 AAALA 0389 E Agricultural Market ACIT, circle-1, Committee, Narasapur Eluru. 14 ITA No.107/Vizag/2009 2003-04 AAALA 0440 J Agricultural Market ACIT, circle-1, Committee, Palakol Eluru. 15 ITA No.108/Vizag/2009 2004-05 AAALA 0440 J Agricultural Market ACIT, circle-1, Committee, Palakol Eluru. 16 ITA No.105/Vizag/2009 2003-04 AAALA 0388 F Agricultural Market ITO, Ward-1, Committee, Penugonda Tanuku. 17 ITA No.106/Vizag/2009 2004-05 AAALA 0388 F Agricultural Market ITO, Ward-1, Committee, Penugonda Tanuku. 18 ITA No.149/Vizag/2009 2003-04 AAALA 0358 D Agricultural Market ITO, Ward-1, Committee, T’gudem Tadepalligudem 19 ITA No.150/Vizag/2009 2004-05 AAALA 0358 D Agricultural Market ITO, Ward-1, Committee, T’gudem Tadepalligudem 20 ITA No.95/Vizag/2009 2004-05 AAALA 0352 K Agricultural Market ITO, Ward-2, Committee, Tanuku Tanuku. 21 ITA No.99/Vizag/2009 2003-04 AAALA 0357 N Agricultural Market ACIT, circle-1, Committee, Unguturu Eluru. 22 ITA No.100/Vizag/2009 2004-05 AAALA 0357 N Agricultural Market ACIT, circle-1, Committee, Unguturu Eluru. Appellants By: Shri G.V.N. Hari, CA Respondents By: Shri Subrata Sarkar, CIT-DR ORDER Per Bench: - All the appeals of these assessees are directed against the order passed by the learned Commissioner of Income Tax (Appeals), Rajahmundry against the quantum assessment relating to the assessment years 2003-04 or/and 2004-05. 2. All these appeals are barred by limitation for 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, we condone the delay in filing these appeals and take up them for hearing. 3. Though all the assessees have raised several grounds, the core issue, which was pressed for consideration, was with regard to the claim of exemption under Section 10(26AAB) of the Act. By placing reliance on the order dated 28- 11-2008 passed by this bench in I.T.A.No.90/Vizag/2007 and batch, it was submitted that the amendment to section 10(26AAB) is 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 Act, 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 be 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/Vizag/2007 and batch, I.T.A.T., Visakhapatnam Bench, vide order dt.28.11.2008, held that the income of the 2 Agricultural Market Committees is exempt under Section 10(26AAB) of the Act. The decision rendered in that case is extracted below: “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 income of AMCs 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”. Since the learned Counsel appearing on behalf of the assessees mainly pressed for consideration the said concerning exemption u/s 20(26AAB), having regard to the fact that the issue stands squarely covered by the afore-said decision, we reverse the orders passed by the tax authorities 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 direct 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 the 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 assessee 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 3 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), Rajahmundry 17. Commissioner of Income Tax, Rajahmundry 13.The Departmental Representative, I.T.A.T., Visakhapatnam 14. Guard File By Order Senior Private Secretary Income Tax Appellate Tribunal Visakhapatnam 4 .