The Commissioner Of Income Tax vs. Krishi Upaj Mandi Samiti Bersaisa

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MAIT/185/2007HC Madhya Pradesh25 November 2019Author: HON'BLE THE CHIEF JUSTICE1 pages
For Petitioner: Sanjeev TuliFor Respondent: ,R.K.Raghuwanshi(1)
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. This decision was based on a previous order of even date in a similar case, M.A.I.T.No.201/2007 (The Commissioner of Income Tax-II, Jabalpur Vs. Krishi Upaj Mandi Samiti, Rewa), where the appeal was also dismissed. Therefore, the High Court followed the precedent set by the earlier dismissal. The specific reasoning of the ITAT regarding the charitable nature of the Krishi Upaj Mandi Samiti and its entitlement to benefits under Section 12A and 12AA was not elaborated upon by the High Court in this judgment, as it was deferring to the prior decision. The operative direction was the dismissal of the Revenue's appeal.

What were the facts?

The Revenue, Commissioner of Income Tax, Bhopal, filed an appeal against an order of the Income Tax Appellate Tribunal (ITAT), Indore Bench. The ITAT's order, dated July 20, 2007, directed the registration of Krishi Upaj Mandi, Berasia, District Bhopal, under Section 12A of the Income Tax Act, 1961. The appeal was admitted on November 29, 2007, to determine substantial questions of law. The High Court noted that the decision in this appeal would be governed by a similar order passed on the same date in M.A.I.T.No.201/2007, involving the Commissioner of Income Tax-II, Jabalpur, versus Krishi Upaj Mandi Samiti, Rewa.

What were the issues?

1. Whether the Income-tax Appellate Tribunal is justified in holding that the Krishi Upaj Mandi Samiti is engaged in charitable work and therefore entitled to the benefits under Section 12A and 12AA of the Income-tax Act, 1961? The Revenue contended that the ITAT was not justified in its finding. The judgment does not record specific arguments from the Revenue beyond this general statement. The judgment does not record any arguments from the assessee.

Which sections of the Income-tax Act were involved?

Section 12A,Section 12AA

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
-( 1 )- THE HIGH COURT OF MADHYA PRADESH: JABALPUR (Division Bench) M.A.I.T.No.185/2007 Commissioner of Income Tax, Bhopal (M.P.) ….Appellant/Revenue Versus Krishi Upaj Mandi Samiti, Berasia District Bhopal (M.P.) …Respondent/assessee Coram Hon’ble Shri Justice Ajay Kumar Mittal, Chief Justice Hon’ble Shri Justice Mohd. Fahim Anwar, Judge Appearance Shri Sanjay Lal, Advocate for the appellant/Revenue.

O R D E R (25.11.2019)

Per: Ajay Kumar Mittal, C.J. (Oral)

The Revenue has filed this appeal against the order of the Income Tax Appellate Tribunal, Indore Bench, Indore passed in I.T.A.No.337/Ind/2007 dated 20.7.2007 directing registration of the assessee-Krishi Upaj Mandi under Section 12A of the Income Tax Act, 1961. 2. This appeal was admitted on 29.11.2007 for determination of the following substantial questions of law:- “Whether the Income-tax Appellate Tribunal, Jabalpur is justified in coming to hold that the Krishi Upaj Mandi Samiti, the first respondent is engaged in charitable work and, therefore, he is entitled to get the benefit under Section 12-A and 12-AA of the Income-tax Act, 1961?”

3.

It was not disputed by the learned counsel for the revenue that detailed order passed in M.A.I.T.No.201/2007 (The Commissioner of Income Tax-II, M.A.I.T.No.201/2007 (The Commissioner of Income Tax-II, Jabalpur Vs. Krishi Upaj Mandi Samiti, Rewa), where the appeal has been dismissed, this appeal is also dismissed.

(Ajay Kumar Mittal) (Mohd. Fahim Anwar) Chief Justice

Judge

C. PHILIP Date: 2020.01.27 17:09:19 +05'30'

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