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2016 (1) TMI 661 - AT - Income TaxGrant of registration u/s. 12A rejected - Held that:- The assessee has been established under the provisions of section 11 of The Maharashtra Agricultural Produce Marketing (Development and Regulation) Act, 1963. Thus, it is a creation of statute, the assessee derives its power to levy fee/cess from section 31 of the Act of 1963. The assessee levy and collect fees/penalty in the prescribed manner at the rates within the rate band fixed by the State Government. Thus, the assessee does not have unfettered power to charge fee/cess. Further, the assessee has power of entry, inspection, search and seizure u/s. 32A of the Act, 1963. The assessee can ask any person carrying business in the market area to produce the accounts and other documents and to furnish information relating to the stock of such agricultural produce and also relating to the payment of market fee and payment to the seller The assessee draws it’s power from the statute and has regulatory functions to perform. The assessee has law enforcing powers to conduct its duties and to accomplish the objects for which it has been established. Charging of nominal fee/cess in course of performance of its duties would not make the assessee a commercial/business establishment. The activities of the assessee are undoubtedly charitable in nature falling in last limb of section 2(15) i.e. ‘advancement of any object of general public utility’ and at the same time is not adversely hit by proviso to section 2(15) of the Act. Thus the assessee is entitled for registration u/s. 12A of the Act. - Decided in favour of assessee
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