TMI Blog2013 (10) TMI 971X X X X Extracts X X X X X X X X Extracts X X X X ..... ultural marketing committees were entitled to seek exemption under section 10(20) read with section 10(29) till March 31,2003 but by reason of amendment to section 10(20) and deletion of section 10(29) with effect from April 1, 2003, they, for the purpose of the Act, ceased to be "local authorities". This itself would not disqualify them from claiming exemption under sections 11(1) and 12 provided they are considered as institutions established for advancement of objects of general public utility, because the Parliamentary benefit under section 10(20) is altogether different from the benefit granted By the tax machinery subject to statutory conditions contained in sections 11 to 13. An agricultural marketing committee is constituted under the State Act for the sole purpose of protecting the interest of agriculturists, farmers and growers. Secondly, the agricultural marketing committee is under legal obligation to provide all necessary infrastructure and market facilities within the market place/yard in a notified market area, including water, electricity, auction/trading platforms, facilities for receiving, paying and depositing money, and resolving disputes. Thirdly, the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration these twelve appeals. At the outset, it is noticed that there was a delay of 24 days in filing four of these appeals, being ITA Nos.939, 940, 941 and 943/Hyd/2013, before this Tribunal. Learned counsel for the assessee has filed petitions, accompanied by affidavits of the Secretaries of the respective Agricultural Market Committees. It is stated in the condonation petitions that the delay in filing the appeals has occurred on account of heavy procurement operations during the month of May, 2013. Considering the marginal nature of delay and the reason explained by the appellants for the same, we are inclined to condone the delay. We accordingly condone the delay in the filing of these four appeals and proceed to dispose of these appeals as well on merits. 4. In all these matters, assessees were in appeal before the Tribunal earlier, aggrieved by the action of the Director of Income-tax(Exemption) in not condoning the delay in the filing of the applications for registration, and consequently not granting registration as prayed for by the assessee-committees in their respective applications. The Tribunal while deciding the appeals, directed the Director of Income-tax(Exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, following decisions of the Tribunal in the following the earlier decision of the Tribunal dated 28.2.2007 in ITA No.556/Hyd/2005 in Agricultural Market Committee, Karimnagar, wherein Delhi Bench decision of the Tribunal in Market Committee V/s. CIT(2005)3 SOT 98(Del); Gujarat Maritime Board V/s. CIT(94 TTJ 1103)(Ahd); and Agricultural Produce and Market Committee, Telhara V/s. CT(97 TTJ 165(Nag), have been followed. The relevant observations of the Tribunal vide paras 3 and 4 of the said order dated 30.3.2007, are extracted below- "3. It is agreed by the parties that exactly identical issue had come up before the Tribunal in the case of Agricultural market Committee, Karimnagar in ITA No.556/Hyd05 dated 28.2.2007........ .................. Identical are the facts in all the appeals before us and based on the reasoning given in the above order in these assessees also, the DI is directed to grant registration to the assessees under S.12AA of the Act. 4. Before parting, it may be noted that ten out of the twelve appeals are barred by limitation. Petitioners praying for condonation of delay have been filed. The delay ranges from more than 300 days to more than 700 days. The de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the ambit of 'charitable purposes'. Aggrieved by the said finding of the Director of Income- tax(Exemption), declining to grant registration, assessees preferred the present applications before us. 10. We have heard both sides and perused the orders of the Director of Income-tax(Exemption) and other material available on record. It has been brought to our notice by the learned counsel for the assessee that similar issue came up for consideration before the coordinate bench of the Tribunal in ITA No.903 and 904/Hyd/2013 in the cases of Agricultural Market Commtiteee, Sarangapur, Adilabad Dsit. And Agricultural Market Committee, Kubeer, Adilabad Dist. Respectively, wherein the Tribunal vide its order dated 17.9.21013, following the decision of the jurisdictional High Court in the case of Agricultural Market Committee (336 ITR 641) held that the assessees have to be granted registration. Relevant portion of the said order of the Tribunal reads as follows- "4. We have heard both the parties and perused the material on record. In our opinion, the judgement relied on by the DIT(E) in the case of AP State Seed Certification Agency has no relevance to the facts of the case. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility. Even if an agricultural marketing committee does not fall in any of the categories under section 2(31)(0 to (vi) of the Act, namely, an individual, a Hindu undivided family, a company, a firm, an association of persons or body of individuals and local authority, it certainly falls within the scope of artificial juridical person. By the Finance Act, 2002, with effect from April 1, 2003, an Explanation was inserted to section 2(31) which makes it clear that, inter alia, an artificial juridical person shall be deemed to be a person whether or not it is established or incorporated with the object of deriving income, profits or gains. Agricultural marketing committees were entitled to seek exemption under section 10(20) read with section 10(29) till March 31,2003 but by reason of amendment to section 10(20) and deletion of section 10(29) with effect from April 1, 2003, they, for the purpose of the Act, ceased to be "local authorities". This itself would not disqualify them from claiming exemption under sections 11(1) and 12 provided they are considered as institutions established for advancement of objects of general public utility, because the Parliamentary benefit under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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