Commissioner of Income Tax vs. Agricultural Market Committee,

THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE SANJAY KUMAR

I.T.T.A.No.420 of 2011

Dated:17.11.2011

Between:

Commissioner of Income Tax, Tirupati .. Appellant

And

Agricultural Market Committee, Kamalapuram .. Respondent

THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE SANJAY KUMAR

I.T.T.A. No.420 of 2011

JUDGMENT: (Per Hon’ble Sri Justice V.V.S.Rao) This appeal is by the revenue against the order passed by the Income Tax Appellate Tribunal directing the jurisdictional Commissioner to grant registration to the respondent Agricultural Market Committee (AMC) under Section 12A/12AA of the Income Tax Act, 1961 (the Act). Be it noted that the respondent AMC, which was availing exemption under Section 10(20) of the Act, was denied the same after amendment was effected to the said provision. Therefore it had applied to the jurisdictional Commissioner seeking registration under Section 12A/12AA of the Act, which was denied. Against this order it had filed appeal before the Tribunal. The question whether the respondent AMC can be treated as institution for ‘charitable purpose’, under the meaning of Section 2(15) of the Act, has been considered by a Division Bench of this Court to which one of us (VVSR, J) is a member in Commissioner of Income Tax v Agricultural Market Committee, Giddalur[1]. It was held therein that all the AMCs established/constituted under the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966, come within the purview of ‘charitable purpose’ and they need to be registered under Section 12A/12AA of the Act.

Following the same, this appeal is dismissed. No costs. The advocate fee is Rs.5,000/- (Rupees five thousand only).

________________ (V.V.S. RAO, J)

______________________ (SANJAY KUMAR, J)

17.11.2011 vs

[1] (2011) 336 ITR 641 (AP)