TaxTMI 
TaxTMI 
2008 (1) TMI 366
X X X X Extracts X X X X
X X X X Extracts X X X X
....as delivered by S.K. KULSHRESTHA J. - These appeals have been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act) against the various orders passed by the Income Tax Appellate Tribunal with regard to the direction to the Income Tax Authorities to grant registration to the Krishi Upaj Mandi under the provisions of Section 12A and 12AA of the Act. 2. These appeals have been admitted on the following questions of law:- "(1)Whether I.T.A.T. was justified in setting aside of the order passed by the Commissioner which has refused to grant registration to the assessee (Krishi Upaj Mandi Samiti) who had applied by them under Section 12A of the Income-tax Act, 1961, for registration as provided in Secti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the controversy has already been decided by this Court, by Gwalior Bench, in Miscellaneous Appeal (I.T.) No.12/2007 (See CIT v. Krishi Upaj Mandi Samati (No.1) [2009] 308 ITR 380 (MP) and this Court has held that the market Committees will fulfill the requirements of Section 11 to get exemption and, therefore, they are entitled to registration under Section 12A and 12AA of the Act, the learned Counsel has placed reliance on the judgment of the Apex Court reported in U.P. Forest Corporation v. Deputy CIT (2008) 297 ITR 1. Learned Counsel has pointed out, by reference to the said decision that in all such matters, a conjoint reading of Section 11, 12 and 12A of the Act manifests that registration under Section 12A is a condition precedent f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....In the case in hand, the questions referred to above deal with the cases of Krishi Upaj Mandi. The preamble of the M. P. Krishi Upaj Mandi Adhiniyam, 1972 under which the Krishi Upaj Mandi is established refers to providing for better regulation of buying and selling of agricultural produce and the establishment and proper administration of markets of agricultural produce in the State of M.P. unlike in the case of Forest Corporation which also deals with the Forest produce, its sale etc., Though the learned counsel suggested that these Mandis charge tax and, therefore, they are not covered within the umbrella of Sec. 12A and 12AA of the Act, a survey of the provisions of the Act indicates that market committee charges fee, for various purpo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lent, it cannot be said that it is not entitled to Registration under section 12A and 12AA of the Act. 8. In the said decision it has been observed that sub-section (2) of Section11 provides that for getting the exemption it is necessary that the income must be applied for Charitable or religious purpose in India to the extent of 85% of the income derived during that year from the property. In the case of the Krishi Upaj Mandi Samiti (No.1) [2009] 308 ITR 380(MP) the Commissioner expressed the view that the Committee charges 2% from the Farm Houses who come to Mandi for sale of the produce as a Mandi Fee and out of 2%, 1.2% is directly transferred to the State Government. It was in this view of the matter that the Commissioner observed t....