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TMI Blog2013 (9) TMI 1106X X X X Extracts X X X X X X X X Extracts X X X X ..... M. Belagali ORDER PER CHANDRA POOJARI, AM: These two appeals by different assessees are directed against different orders of the Director of Income-tax (Exemptions), Hyderabad wherein the DIT(E) rejected the applications of the assessees for registration u/s. 12AA of the Income-tax Act, 1961. Since the issue involved in both the appeals is common, they are clubbed together, heard together and are being disposed of by this common order for the sake of convenience. 2. Admittedly, in both these cases, the assessees came in appeal before this Tribunal on earlier occasion. The Tribunal on earlier occasion, vide order dated 24.11.2008 in ITA Nos. 172 and 174/Hyd/2008 observed as follows: "7. We have carefully considered the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of carrying on the objectives as enumerated in section 2(15) of the Act and the proviso to the section is not applicable to the assessees' cases. We have considered the earlier order of the Tribunal and also the judgement of the Supreme Court in the case of Agricultural Produce Market Committee vs. CIT (301 ITR 1). We take support from the judgement of jurisdictional High Court in the case of CIT vs. Agricultural Market Committee (336 ITR 641) (AP), wherein the High Court held as under: "Charitable purpose" in section 2(15) of the Income-tax Act, 1961 includes relief to the poor, education, medical relief and the advancement of any other object of general public utility. The words "public utility" or &q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gal obligation for a charitable purpose to wit the advancement of an object of general utility. 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. Agricultur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f which ten per cent. shall be, contributed to the Central Market Fund which shall vest in the Government, which exercises power of supervision and superintendence over the market committees. The Government administers and applies the Central Market Fund, inter alia, for providing grants to needy agricultural marketing committees. Fifthly, agricultural marketing committees serve an important aspect of rural economy, i.e., providing facilities for marketing agricultural produce and products of livestock. Section 14(1) of the Agricultural Marketing Committee Act read with rule 8 of the Rules mandate that "all moneys received by an agricultural marketing committee shall be deposited in a single banking account with the nearest Government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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