Itta/59/2011 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.Nos.59, 60 AND 61 OF 2011 April 11, 2011 Between: Commissioner of Income Tax, Guntur AND … Appellant Agricultural Market Committee, Mangalagiri … Respondent THE HON'BLE SRI JUSTICE V.V.S.RAOANDTHE HON'BLE SRI JUSTICE RAMESH RANGANATHAN I.T.T.A.Nos.59, 60 AND 61 OF 2011 COMMON JUDGMENT:(Per Hon’ble Sri Justice V.V.S.Rao) These appeals are filed under Section 260A of the Income TaxAct, 1961 (the Act). By impugned orders, the Income Tax AppellateTribunal, Visakhapatnam Bench, took the view that Section 10(26AAB)of the Act is retrospective, and dismissed the appeals 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 ITTA Nos.421 of 2010 andbatch. It was held therein that Section 10(26AAB) of the Act isprospective in operation. The decision therein – both the Counsel donot dispute – squarely covers the issue that is raised in these appeals. Following the decision in ITTA Nos.421 of 2010 and batch,dated 30.3.2011 these appeals are, accordingly, allowed, withoutany order as to costs. _______________(V.V.S.RAO, J) ______________________________ April 11, 2011YS (RAMESH RANGANATHAN, J)