The Commissioner Of Income Tax Bhopal vs. Krishi Upaj Mandi Samiti Bhainsdehi

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MAIT/184/2007HC Madhya Pradesh25 November 2019Author: HON'BLE THE CHIEF JUSTICE2 pages
For Petitioner: Sanjeev Tuli
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 did not dispute that the detailed order passed in M.A.I.T.No.201/2007 (Commissioner of Income Tax-II, Jabalpur Vs. Krishi Upaj Mandi Samiti, Rewa) of even date would govern the decision of this appeal. Since the appeal in M.A.I.T.No.201/2007 was dismissed, this appeal was also dismissed accordingly. The specific reasoning of the ITAT regarding the charitable nature of the assessee's work and its entitlement to Section 12A/12AA benefits was not elaborated upon by the High Court, as the decision was based on the precedent of the other dismissed appeal. No issue was expressly left undecided.

What were the facts?

The Commissioner of Income Tax, Bhopal (Revenue) filed an appeal before the High Court of Madhya Pradesh against an order of the Income Tax Appellate Tribunal (ITAT), Indore Bench. The ITAT's order, dated June 5, 2007, directed the registration of Krishi Upaj Mandi Samiti, Bhainsdehi, District Betul (assessee) under Section 12A of the Income Tax Act, 1961. The High Court admitted the appeal on November 29, 2007, to decide substantial questions of law. The Revenue's counsel did not dispute that the decision in a similar case, M.A.I.T.No.201/2007 (Commissioner of Income Tax-II, Jabalpur Vs. Krishi Upaj Mandi Samiti, Rewa), would govern this appeal. That other appeal was dismissed by the High Court on the same date.

What were the issues?

1. Whether the Income-tax Appellate Tribunal was 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? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue's counsel conceded that the decision in a related appeal, M.A.I.T.No.201/2007, would govern this matter. This implies the Revenue did not press its arguments on the merits of the present appeal, relying instead on the outcome of the other case.

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.184/2007 The Commissioner of Income Tax, Bhopal (M.P.) ….Appellant/Revenue Versus Krishi Upaj Mandi Samiti, Bhainsdehi District Betul (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.346/Ind/2007 dated 5.6.2007 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 PHILIP Date: 2020.01.27 17:08:35 +05'30' -( 2 )-

C.

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