Itta/408/2011 Of Commissioner Of Income Tax v. Agricultural Market Committee

THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.408 of 2011 Date:17.11.2011 Between: Commissioner of Income Tax, Rajahmundry AND … Appellant Agricultural Market Committee, Achanta … Respondent THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.408 of 2011 JUDGMENT:(Per Hon’ble Sri Justice V.V.S.Rao) This appeal is filed under Section 260A of the Income TaxAct, 1961 (the Act). By the impugned order the Income TaxAppellate Tribunal, Visakhapatnam Bench took the view that Section10(26AAB) of the Act is retrospective, and dismissed the appealfiled by the Revenue. Section 10(26AAB) of the Act exempts income of AgriculturalMarket Committees (AMCs) from the levy of income tax under theAct. It was inserted by the Finance Act, 2008 with effect from01.4.2009. The question whether the said provision is retrospectivein operation has been considered by a Division Bench of this Courtto which one of us (VVSR, J) is a member, in Commissioner of Income Tax v Agricultural Market Committee, Tanuku[[1]]. It washeld 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 Agricultural Market Committee, Tanuku, this appeal is accordingly allowed. No costs. Theadvocate fee is Rs.5,000/- (Rupees five thousand only). 17.11.2011vs [1](2011) 337 ITR 299 (AP) _______________ (V.V.S.RAO, J) _____________________ (SANJAY KUMAR, J)