C I T vs. MARKET COMMITTEE, FARIDKOT

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ITA/219/2009HC Punjab & HaryanaPHHC01084303200902 July 2009Author: MR. JUSTICE ADARSH KUMAR GOEL,MRS JUSTICE DAYA CHAUDHARY4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court noted that the Revenue's counsel fairly conceded that the matter was covered against the Revenue by pronouncements of higher authorities. Specifically, the counsel referred to the Supreme Court's judgment in Commissioner of Income Tax Vs. Gujarat Maritime Board – (2007) 295 ITR 561 (SC) and the High Court's own judgment in Commissioner of Income Tax vs. Market Committee – (2007) 294 ITR 563. These judgments, by implication, would have affirmed the ITAT's decision to grant exemption under Sections 11 and 12 and registration under Section 12AA to the Market Committee, as the revenue did not press its appeal on these points. The ratio decidendi is that if a matter is covered by a binding precedent from the Supreme Court or the jurisdictional High Court, the appeal would be dismissed without further deliberation on the merits of the specific facts. No issue was expressly left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax, Bathinda, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order of the Income-tax Appellate Tribunal (ITAT), Amritsar Bench. The ITAT's order, passed in ITA No.126 (ASR) 2007 and its corrigendum, pertained to the assessment year 2004-05 for the assessee, Market Committee, Sadiq. The Market Committee, constituted under the Agricultural Produce Marketing (Regulation) Act, 1963, had claimed exemption under Sections 11 and 12 of the Act, asserting its income was applied for charitable purposes. This claim was initially rejected by the Assessing Officer (AO) but was subsequently upheld by the Commissioner of Income Tax (Appeals) and the ITAT.

What were the issues?

1. Whether, on the facts and circumstances, the ITAT was legally justified in holding that the income of the assessee was exempt under Sections 11 and 12 of the Income-Tax Act, 1961? (Question of law) 2. Whether, on the facts and circumstances, the ITAT was legally justified in declaring the assessee as a charitable institution entitled to registration under Section 12AA, despite its income not being of the nature prescribed by Sections 11 and 12 of the Income-Tax Act, 1961? (Question of mixed law and fact) Assessee's Contentions: The assessee claimed exemption under Sections 11 and 12 of the Act on the ground that its income was applied for charitable purposes. The ITAT upheld this claim, following the Bombay High Court's judgment in CIT vs. Agricultural Produce and Market Committee (2007) 291 ITR 419. Revenue's Contentions: The Revenue's counsel conceded that the matter was covered against them by the Supreme Court's judgment in Commissioner of Income Tax Vs. Gujarat Maritime Board – (2007) 295 ITR 561 (SC) and this Court's judgment in Commissioner of Income Tax vs. Market Committee – (2007) 294 ITR 563.

Which sections of the Income-tax Act were involved?

Section 260A,Section 11,Section 12,Section 12AA

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 219 of 2009 (O&M) Date of decision:2.7.2009 The Commissioner of Income Tax, Bathinda ......Appellant Vs. Market committee, Sadiq, Tehsil & Distt. Faridkot ...Respondent CORAM:- HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MRS.JUSTICE DAYA CHAUDHARY PRESENT: Ms. Savita Saxena, Advocate, Standing Counsel for the Revenue. **** ADARSH KUMAR GOEL, J. (Oral)

1.

Delay condoned. Heard on merits.

2.

This appeal has been preferred by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, “the Act”) against the order of Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, passed in ITA No.126 (ASR) 2007 dated 28.9.2007 and corrigendum order dated 21.02.2008 in the case of Market Committee, Sadiq, for the assessment year 2004-05, proposing to raise following substantial questions of law: 1. “Whether on the facts and circumstances of the case, the learned ITAT is legally justified in holding that the income of the assessee was ITA No. 219 of 2009 -2- exempt under Sections 11 and 12 of the Income-Tax Act 1961”. 2. “Whether on the facts and circumstances of the case, the learned ITAT is legally justified to declare the assessee as charitable institution entitled for registration under Section 12AA in spite of the fact that the income of the assessee is not the income prescribed in the provisions of Sections 11 and 12 of the Income Tax Act, 1961 as the income of the assessee is not of the nature as prescribed by Sections 11 and 12”.

3.

The assessee -Market Committee, constituted under the is covered against the Revenue by the judgment of the Hon'ble Supreme Court in Commissioner of Income Tax Vs. Gujarat Maritime Board – (2007) 295 ITR 561 (SC) and judgment of this Court in Commissioner of Income Tax vs. Market Committee – (2007) 294 ITR 563. ITA No. 219 of 2009 -3-

5.

In view of the above, this appeal is dismissed. (ADARSH KUMAR GOEL) JUDGE (DAYA CHAUDHARY) July 02, 2009

JUDGE raghav Note: Whether this case is to be referred to the Reporter ........Yes/No ITA No. 219 of 2009 -4-

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