The Commissioner Of Income Tax, Panchkula v. Market Committee, Siwan District Kaithal

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. ITA No.284 of 2009 (O&M)Date of decision: 14.7.2009 The Commissioner of Income Tax, Panchkula Vs. Market Committee, Siwan District Kaithal -----Appellant Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOELHON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:-Mr.Yogesh Putney, Sr.Standing Counsel for therevenue. Adarsh Kumar Goel,J. Delay condoned. The revenue has preferred this appeal under section 260A of the Income Tax Act, 1961 against the order of IncomeTax Appellate Tribunal, Chandigarh Bench (SMC) Chandigarhdated 31.5.2007, in ITA No.130/Chandi/2007, for the assessmentyear 2003-04, proposing to raise following substantial questions oflaw for opinion of this Court:- (i)Whether on the facts and in thecircumstances of the case, the ld. ITAT (ii) was right in law in dismissing the appealof the Revenue, against the order of theCIT(A), directing the AO to assess theincome of the assessee, in the status ofcharitable trust, as per Sections 11 to 13of the Income Tax Act, ignoring the factthat Market Committee is neither a trustnor a charitable institution, as the incomeneither derived from the property, heldunder trust, wholly for charitable orreligious purposes nor from voluntarycontributions? Whether on the facts and in thecircumstances of the case, the ld. ITATwas right in law in dismissing the appealof the Revenue, against the order of theCIT(A) directing the AO to assess theincome of the assessee, in the status ofcharitable trust, as per Sections 11 to 13of the Income Tax Act, ignoring the factthat income derived by the MarketCommittee from collection of market fee,composition fee and license fee as well asfrom purchase of land and sale of plots ispurely derived from commercial activityand the same does not come within theambit of sections 11 to 13 of the IncomeTax Act? (iii)Whether on the facts and in thecircumstances of the case, the Ld. ITATwas right in law in holding that theMarket Committee is a charitable trustparticularly when after insertion toamendment under section 10(20) by theFinance Act 2002, the Market Committeehas been excluded from the definition oflocal authority and exemption undersection 10(20) has been withdrawn? (iv)Whether in the facts and circumstances ofthe case the Market Committee is entitledto registration under section 12AA of theIncome Tax Act, 1961 as it does not carrycharitable activities within the meaning ofSection 2(15) of the Income tax Act,1961?” Learned counsel for the revenue does not dispute that the matter is covered by earlier judgment of this Court inCIT v.Market Committee, (2007) 294 ITR 563. Accordingly, this appeal is dismissed. (Adarsh Kumar Goel)Judge July 14, 2009‘gs’ (Daya Chaudhary)Judge