Itta/110/2011 Of Commissioner Of Income Tax-I v. Agricultural Market Committee

THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE RAMESH RANGANATHAN I.T.T.A.No.110 of 2011 Date:20.04.2011 Between: Commissioner of Income Tax-1, Visakhapatnam AND … Appellant Agricultural Market Committee, Paderu … Respondent THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE RAMESH RANGANATHAN I.T.T.A.No.110 of 2011 JUDGMENT:(Per Hon’ble Sri Justice V.V.S.Rao) This appeal is filed under Section 260A of the Income Tax Act,1961 (the Act). By the impugned order the Income Tax AppellateTribunal, Visakhapatnam Bench took the view that Section 10(26AAB)of the Act is retrospective, and dismissed the appeal filed by theRevenue. Section 10(26AAB) of the Act exempts income of AgriculturalMarket Committees (AMCs) from the levy of income tax under the Act. Itwas inserted by the Finance Act, 2008 with effect from 01.4.2009. Thequestion whether the said provision is retrospective in operation hasbeen considered by this Division Bench in Commissioner of Income Tax, Rajahmundry v Agricultural Market Committee, Tanuku[[1]]. Itwas held therein that Section 10(26AAB) of the Act is prospective inoperation. The decision therein – both the Counsel do not dispute –squarely covers the issue that is raised in this appeal. Following the decision in AMC Tanuku (supra) this appeal isaccordingly allowed without any order as to costs. _______________ (V.V.S.RAO, J) ______________________________ (RAMESH RANGANATHAN, J) 20.04.2011vs [1]ITTA Nos.421 of 2010 and batch, dated 30.03.2011