TMI Blog2012 (4) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... roduce Marketing (Development and Regulation) Act, 2005, for the assessment years as tabulated below:- Name of the assessee Assessment year Appeal No. Date of order of the Tribunal M/s.Agriculture Produce Market Committee, Solan, District Solan. 2004-2005 and 2005-2006 ITA Nos.791 and 792 of 2007. 19.06.2008 M/s.Agriculture Produce Market Committee, Paonta Sahib, District Sirmaur, 2007-2008 and 2008-2009 ITA Nos.386 and 387 of 2010. 14.05.2010 M/s.Agriculture Produce Market Committee, Paonta Sahib, District Sirmaur, 2004-2005, 2005-2006 and 2006-2007 ITA Nos.364,365 366 of 2010. 03.05.2010 M/s.Agriculture Produce Market Committee, Paonta Sahib, District Sirmaur, 2007-2008 and 2008-2009 ITA Nos.386 and 387 of 2007. 14.05.2010 M/s.Agriculture Produce Market Committee, Una, District Una. 2003-2004 to 2008-2009 ITA Nos.971 to 976 of 2010. 31.08.2010 M/s.Agriculture Produce Market Committee, Una, District Una. 2003-2004 to 2008-2009 ITA Nos.971 to 976 of 2010. 31.08.2010 M/s.Agricu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntonments Act, 1924 (2 of 1924). 5. Two questions have been raised for the consideration:- (i). Whether in facts and circumstances of the case the Hon ble Tribunal was justified in law in holding that the provisions of the Section 10(20) are not applicable to the appellant and that the appellant is not a Local Authority? (ii) Whether on facts and circumstances of the case the Hon ble Tribunal was justified in law in holding that the provisions of the Section 10(20) are not applicable to the appellant and subsequently interest u/s 234A and u/s 234B is liable to be imposed to the appellant? 5. The questions need not detain us further as they have been settled by the Supreme Court. In Agricultural Produce Market Committee vs. Commissioner of Income-Tax and Another, (2007)294 ITR 549 (Delhi), this question engaged the attention of the High Court of Delhi which, after consideration of the case law on the point and the effect of the explanation added to Section 10(20) of the Act, held:- 9. The appellant-committee is no doubt a statutory committee established under the provisions of a legislative enactment. It has been given a distinct nomenclature with definite statutory fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g (Regulation) Act, 1998, provision of which are in pari materia with the Himachal Pradesh Act, holds:- 28. As stated above, it has been argued on behalf of the appellants that AMC(s) is not a Municipal Committee. The words Municipal Committee finds place in item (iii) of the said Explanation. According to the appellants, although AMC(s) is not a Municipal Committee still is a local authority of a like nature and character to that of Municipal Committee performing municipal functions legally entitled to control the local fund, namely, the Market Fund. For that proposition reliance is placed on paragraph 2 of the judgment in the case of R.C. Jain (1981)2 SCC 308, as quoted hereinabove. However, it may be noted that this court in the case of R.C. Jain, was required to consider the question as to whether Delhi Development Authority is a local authority as its employees stood outside the purview of the Payment of Bonus Act, 1965. Under Section 32(iv) of the Payment of Bonus Act, 1965 it is stated that nothing in the said 1965 Act shall apply to the employees employed by an establishment engaged in any industry carried on by or under the authority of any Department of the Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, in our view the judgment of this Court in the case of R.C. Jain, followed by judgments of various High Courts on the status and character of AMC(s) is no more applicable to the provisions of section 10(20) after insertion of the Explanation/definition clause to that sub-section, vide the Finance Act, 2002. 30. The questions still remains as to why Parliament has used the words Municipal Committee and District Board in item (iii) of the said Explanation. In our view, Parliament has defined local authority to mean-a panchayat as referred to in clause (d) of article 243 of the Constitution of India, Municipality as referred to in clause (e) of article 243P of the Constitution of India. However, there is no reference to article 243 after the words Municipal Committee and District Board . In our view, the Municipal Committee and District Board in the said Explanation are used out of abundant caution. In 1897 when the General Clauses Act was enacted there existed in India Municipal Committees and District Boards. They continued even thereafter. In some remote place it is possible that there exists a Municipal Committee or a District Board. Therefore, in our view, apart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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