Itta/303/2011 Of Commissioner Of Income Tax, Tirupathi v. Agrilcultural Market Committee

THE HON’BLE SRI JUSTICE V.V.S.RAOAND 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.RAOAND 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 theIncome Tax Appellate Tribunal directing the jurisdictional Commissionerto 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 availingexemption under Section 10(20) of the Act, were 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 AMCs can be treated asinstitutions 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.251of 2008 and batch vide common judgment dated 01.03.2011. We havetaken the view that all the AMCs established/constituted under theAndhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966,come within the purview of ‘charitable purpose’ and they need to beregistered under Section 12A/12AA of the Act. Following the same, the appeal is dismissed without any order asto costs. ________________ (V.V.S. RAO, J) ______________________________ (RAMESH RANGANATHAN, J)