Law:

Section:

[2008] 170 Taxman 515 (Madhya Pradesh)/[2009] 308 ITR 401 (Madhya Pradesh) [2008] 170 TAXMAN 515 (MP) HIGH COURT OF MADHYA PRADESH, INDORE BENCH Commissioner of Income-tax* v. Krishi Upaj Mandi Samiti S.K. KULSHRESTHA AND SMT. S.R. WAGHMARE, JJ. IT APPEAL NOS. 217, 221, 224, 228, 232, 235, 237, 238, 241, 242, 244, 253, 254, 256 TO 277, 279 TO 282, 289, 308 TO 312, 320, 321, 335, 412 AND 413 OF 2007 JANUARY 18, 2008 Section 12A, read with sections 11 and 12AA, of the Income-tax Act, 1961 - Charitable or religious trust - Registration of - Whether Krishi Upaj Mandies constituted to protect interest of farmers in State fulfil requirements of section 11 and, therefore, are entitled to registration under sections 12A and 12AA and merely because these mandies are charging fee, same would not militate against altruistic purpose for which these mandies are established - Held, yes FACTS By a consolidated order, the Tribunal set aside the order of the Commissioner by which, he had refused to grant registration to the Krishi Upaj Mandi Samities which had applied under section 12A for registration and allowed the appeals of the Krishi Upaj Mandies, directing the Commissioner to take necessary steps to grant registration to all the assessees from the date of their creation. On revenue's appeal : HELD The preamble of the M.P. Krishi Upaj Mandi Adhiniyam, 1972, under which 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. Though the revenue suggested that those mandies charge tax and, therefore, were not covered within the umbrella of sections 12A and 12AA, yet a survey of the provisions indicates that market committee charges fee for various purposes which has the necessary nexus with the service rendered and, thus, quid pro quo. Merely because it is charging fee same does not militate against the altruistic purpose, for which these mandies are established. [Para 4] The Krishi Upaj Mandi does not have any commercial activity, but has been constituted under the 1972 Act to protect the interest of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492