29 January 2014
Income Tax Whether Sec 10 26AAB of the IT Act 1961 exempts income of Agricultural Market Committees AMCs from the levy of income tax under the Act inserted by the Finance Act 2008 w e f 1st April 2009 is retrospective in operation?
The section is prospective in nature as you can gather from the memorandum to the Finance Act 2008 point 7.1 and 7.2
The same was upheld in the case of Agricultural Produce Market Committee Vs. CIT reported in [305 ITR 1]
The same view was accepted by Hyderabad bench of ITAT while adjudicating on a batch of appeals on the same matter.
However, there is one judgment: Agricultural Market Committee vs. ACIT in ITA No.90/Vizag/2007 wherein it was held that the section has retrospective application.
In my view this judgment is erroneous and was also not considered by Hyd bench while adjudicating on the aforementioned matter.
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