Law:

Section:

Section 10(26AAB) of the Income-tax Act, 1961 - Agricultural produce market committee - Assessment years 2003-04 and 2004-05 - Section 10(26AAB) is operative only from 1-4-2009, and it cannot operate retrospectively before insertion of section 10(26AAB), an agricultural market committee could claim exemption under section 11(1) as a charitable institution [In favour of revenue] After insertion of the Explanation to section 10(20), with effect from 1-4-2003, an agricultural market committee ceased to be a 'local authority'. Before insertion of section 10(26AAB), an agricultural market committee could claim exemption under section 11(1) as a charitable institution. In the pre-2003 period, agricultural market committees were treated as local authorities, but post 1-4-2009, they are not treated as local authorities but are grouped as a separate category of statutory creations entitled to the benefit under section 10. Section 10(26AAB) is operative only from 1-4-2009, and it cannot operate retrospectively nor can agricultural market committees be treated as local authorities under section 10(20), especially when the Parliament advisedly intended to give exemption under section 10(20) only to the four named categories of local authorities and not to agricultural market committees. CASES REFERRED TO Agricultural Produce Market Committee v. CIT [2008] 305 ITR 1 (SC), Allied Motors P. Ltd. v.CIT [1997] 224 ITR 677 (SC), Aruna Roy v. Union of India [2002] 7 SCC 368 ; [2002] AIR 2002 SC 3176, Bommai (S. R.) v. Union of India [1994] AIR 1994 SC 1918, Brij Mohan Das Laxman Das v. CIT [1997] 223 ITR 825 (SC), Budha Veerinaidu v. State of Andhra Pradesh[1983] 143 ITR 1021 (AP), Calcutta State Transport Corporation v. CIT [1996] 219 ITR 515(SC), Central Bank of India v. Their Workmen [1959] 29 Comp Cas 367 (SC); [1959-60] 17 FJR 57 (SC); [1960] AIR 1960 SC 12, CIT v. Agricultural Market Committee [1983] 143 ITR 1020 (AP), CIT v. Agricultural Market Committee [2011] 336 ITR 641 (AP), CIT v. Agricultural Marketing Produce Committee [2001] 250 ITR 369 (Delhi), CIT v. Agricultural Produce and Market Committee [2007] 291 ITR 419 (Bom), CIT v. Alom Extrusions Ltd. [2009] 319 ITR…

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