Commissioner of Income Tax, Tirupathi vs. Agrilcultural Market Committee

THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN

I.T.T.A.No.303 OF 2011

Date:27.07.2011

Between:

Commissioner of Income Tax, Tirupati .. Appellant

And

Agricultural Market Committee, Guntakal .. Respondent

THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN

I.T.T.A.No.303 OF 2011

ORDER: (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 Committees (AMCs) under Section 12A/12AA of the Income Tax Act, 1961 (for short ‘the Act’). Be it noted that the respondent AMCs, which were availing exemption under Section 10(20) of the Act, were denied the same after amendment was affected to the said provision. Therefore they had applied to the jurisdictional Commissioner seeking registration under Section 12A/12AA of the Act, which was denied. Against this order they had filed appeal before the Tribunal. The question whether the respondent AMCs can be treated as institutions for ‘charitable purpose’, under the meaning of Section 2(15) of the Act, has been considered by us in similar matters in I.T.T.A.No.251 of 2008 and batch vide common judgment dated 01.03.2011. We have taken the view 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, the appeal is dismissed without any order as to costs.

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

______________________________ (RAMESH RANGANATHAN, J)

27.07.2011