Law:

Section:

Section 2(15) of the Income-tax Act, 1961 - Charitable/ religious purpose - Agricultural Marketing Committee constituted by Government of State is an 'institution' established for advancement of object of general public utility and, therefore, exists for charitable purpose; it is also a person and it will, therefore, be entitled to registration under section 12A [In favour of assessee] Where the assessee, an Agricultural Marketing Committee (AMC) constituted under the enactment of the State Legislature, was deriving income from property held under legal obligation for a charitable purpose for the advancement of general object of utility, it was, entitled to be registered under section 12A/12AA to enable it to claim exemption as per law. It was because the assessee was constituted under the State Act for the sole purpose of protecting the interest of agriculturists, farmers and growers. Secondly, the AMC was under legal obligation to provide all necessary infrastructure and market facilities within the market. Section 2(31)( vii) makes it clear that every artificial jurisdical person, not falling within clauses (i) to (vi) of section 2( 31), is also a 'person' for the purpose of the Act. Even if an AMC does not fall in any of the categories under section 2(31)( i) to (vi), namely, an individual, a HUF, an company, a firm, an association of persons or body of individuals and local authority, it certainly falls within the scope of artificial juridical person. As per section 4 of the AMC Act, AMC constituted by the Government for every notified area shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of the property and may by its corporate name sue and be used. It is settled law that a body corporate is a person. Thus, an Agricultural Marketing Committee is a person. Further, an Agricultural Marketing Committee constituted under section 4(1) of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966 is entitled to registration under section 12A. CASES REFERRED TO Andhra Pradesh State Road Transport Corporation v. ITO [1964] 52 ITR 524 (SC), M. C. V. S. Arunachala Nadar v. State of Madras…

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