Itta/226/2011 Of Commissioner Of Income Tax v. Agricultural Market Committee

THE HON'BLE SRI JUSTICE V.V.S.RAOAND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN I.T.T.A.No.226 OF 2011 Dated:27.06.2011 Between: Commissioner of Income Tax,Tirupati … Appellant AND Agricultural Market Committee, Rayadurg … Respondent THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE RAMESH RANGANATHAN I.T.T.A.No.226 OF 2011 JUDGMENT:(Per Hon’ble Sri Justice V.V.S.Rao) This appeal is filed by the revenue against the order passed bythe Income Tax Appellate Tribunal directing the jurisdictionalCommissioner to grant registration to the respondent Agricultural MarketCommittee (AMC) under Section 12A/12AA of the Income Tax Act,1961 (for short ‘the Act’). Be it noted that the respondent AMC, which was availingexemption under Section 10(20) of the Act, was denied the same afteramendment was affected to the said provision. Therefore, they hadapplied to the jurisdictional Commissioner seeking registration underSection 12A/12AA of the Act, which was denied. Against this order theyhad filed appeal before the Tribunal. The question whether the respondent AMC can be treated as aninstitution for ‘charitable purpose’, under the meaning of Section 2(15) ofthe Act, has been considered by us in similar matters in I.T.T.A.No.251of 2008 and batch vide common judgment dated 01.03.2011. We havetaken 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 tobe registered under Section 12A/12AA of the Act. Following the same, this appeal is dismissed without any orderas to costs. 27.06.2011KH _______________ (V.V.S.RAO, J) ______________________________(RAMESH RANGANATHAN, J)