Itta/420/2011 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.420 of 2011 Dated:17.11.2011 Between:Commissioner of Income Tax,Tirupati .. Appellant And Agricultural Market Committee, Kamalapuram .. Respondent THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No.420 of 2011 JUDGMENT:(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 Committee(AMC) under Section 12A/12AA of the Income Tax Act, 1961 (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 effected to the said provision. Therefore it had appliedto the jurisdictional Commissioner seeking registration under Section12A/12AA of the Act, which was denied. Against this order it had filedappeal before the Tribunal. The question whether the respondent AMC can be treated asinstitution for ‘charitable purpose’, under the meaning of Section 2(15) ofthe Act, has been considered by a Division Bench of this Court to whichone of us (VVSR, J) is a member in Commissioner of Income Tax v Agricultural Market Committee, Giddalur[[1]]. It was held therein that allthe AMCs established/constituted under the Andhra Pradesh(Agricultural Produce and Livestock) Markets Act, 1966, come within thepurview of ‘charitable purpose’ and they need to be registered underSection 12A/12AA of the Act. Following the same, this appeal is dismissed. No costs. Theadvocate fee is Rs.5,000/- (Rupees five thousand only). ________________ (V.V.S. RAO, J) ______________________ (SANJAY KUMAR, J) [1](2011) 336 ITR 641 (AP)