AGRICULTURAL MARKET COMMITTEE, ACHAMPET,MAHABOOBNAGAR vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-5(1), HYDERABAD

We have gone through the assessment order and find that the AO has taken note of the order of ITAT in ITA No.925/Hyd/2013, dt.23-09-2013, wherein the ITAT had directed granting of registration u/s.12AA of the Act to AMC Sultanabad, Karimnagar Dist., but held that - the same cannot be applied to the assessee before us.

Ld.Counsel for the assessee has placed before us the decision of ITAT in ITA No.214/Hyd/2008, dt.05-08-2008, wherein the Tribunal has directed the DIT(E) to re-consider the issue of granting of registration u/s.12AA of the Act in accordance with law on merits, after giving a reasonable opportunity of hearing to assessee. Ld.Counsel for the assessee further submitted that the consequential order has not been passed by the DIT(E) till date and therefore, AO has refused to grant exemption u/s.11 of the Act.

Ld.DR was also heard.

Taking the rival contentions into consideration, we are inclined to set aside the assessment orders and direct the AO to await the decision of DIT(E) on the issue of registration u/s.12AA of the Act and if the assessee is granted registration u/s.12AA of the Act, then the exemption u/s.11 of the Act shall be granted, subject to fulfilment of other conditions, such as application of income for the objects of the Trust etc.,

In the result, appeals of the assessee for both the assessment years are treated as allowed for statistical purposes.

Agricultural Market Committee, Achampet, Mahaboobnagar Dist.,

Asst.Commissioner of Income Tax, Circle-5(1), Hyderabad.

CIT(Appeals)-4, Hyderabad.

The Pr.CIT-4, Hyderabad.

D.R. ITAT, Hyderabad.

Guard File.