Loading judgment…
No AI summary yet for this case.
HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE K.G.SHANKAR
I.T.T.A.No.500 of 2011
Date: 12-4-2012
Between
Commissioner of Income Tax, Guntur … Petitioner
and
Agricultural Market Committee, Duggirala … Respondent HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE K.G.SHANKAR
I.T.T.A.No.500 of 2011
Judgment: (per V.Eswaraiah, J.)
Heard Sri S.R.Ashok, learned Senior Standing Counsel for the petitioner/Income Tax and Smt. K.Lalitha, learned Standing Counsel for the respondent/Agricultural Market Committee.
This is an appeal filed under Section 260(A) of the Income Tax Act, 1961 to consider the following substantial questions of law:
(A) Whether the Appellate Tribunal is justified
in holding that Section 10(26AAB) of the Income Tax Act as introduced by the Finance Act of 2008 w.e.f. 01-4-2009 is declaratory in character and hence, retroactive in operation? (B) Whether the Appellate Tribunal is justified in not holding that Section 10(26AAB) of the I.T.Act insofar as carving exemption in favour of Market Committees from levy of tax is amending in nature and hence liable to be given effect to w.e.f. 01-4-2009? (C) Whether the Appellate Tribunal is justified in holding that Agricultural Market Committee is exempt from income tax for the period in question inspite of the decision of the Hon’ble Supreme Court in the case of Agricultural Market Committee, Narela Vs. CIT (305 ITR 1)?
Both the learned counsel appearing for the respective parties submit that the questions involved in this appeal are squarely covered by a judgment passed by a Division Bench of this Court in the case of CIT v. AGRICULTURE MARKET COMMITTEE (AP)[1]. In the said case, the Division Bench of this Court held as follows: “48. In the result, for the conclusions on the points urged and the reasons as above, we hold that section 10(26AAB) of the Act inserted by the Finance Act, 2008, with effect from April 1, 2009, cannot be applied retrospectively with effect from April 1, 2003, and that the new clause (26AAB) in section 10 of the Act is applicable with effect from April 1, 2009, and shall accordingly apply for the assessment year 2009-10 and for the subsequent assessment years.”
In view of the fact that the aforesaid questions are already answered in favour of the Commissioner of Income Tax, the appeal is allowed in terms of the aforesaid judgment.
___________________ V.ESWARAIAH, J.
___________________ K.G.SHANKAR, J. 12th April, 2012. Ak HON’BLE SRI JUSTICE V.ESWARAIAH AND HON’BLE SRI JUSTICE K.G.SHANKAR
I.T.T.A.No.500 of 2011 (Judgment of the Division Bench delivered by VE, J.)
12th April, 2012. (Ak) [1] [2011] 337 ITR 299 (AP)