| Case ID |
d6d5fad2-30dd-4d19-bc1c-88c89d48a060 |
| Body |
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| Case Number |
IT Appeal Nos. 217, 221, 224, 228, 232, 235, 237, |
| Decision Date |
Jan 18, 2008 |
| Hearing Date |
|
| Decision |
The Madhya Pradesh High Court upheld the decision of the Income-tax Appellate Tribunal, which had set aside the Commissioner's refusal to grant registration to Krishi Upaj Mandi Samiti under sections 12A and 12AA of the Income-tax Act, 1961. The court ruled that these mandis, established to protect farmers' interests, met the requirements for registration despite charging fees. The court clarified that the altruistic purpose of these mandis is not undermined by their fee-charging activities, which are necessary for the services rendered. The court emphasized the benevolent nature of the mandis and their entitlement to registration under the relevant sections, thereby dismissing the revenue's appeal. |
| Summary |
This case involves the registration of Krishi Upaj Mandi Samiti under sections 12A and 12AA of the Income-tax Act, 1961, which pertains to charitable and religious trusts. The Madhya Pradesh High Court ruled that the mandis, aimed at safeguarding farmers' interests, are not disqualified from registration merely because they charge fees. The court reasoned that such fees serve a purpose related to the services provided and do not detract from their charitable objectives. This ruling highlights the importance of supporting agricultural markets and ensuring that entities protecting farmers can operate without undue tax burdens. The court's decision reinforces the legal framework surrounding charitable organizations, emphasizing that the financial operations of such entities must align with their altruistic missions. The case is significant for entities seeking similar registrations and clarifies the interpretation of the Income-tax Act concerning charitable trusts. |
| Court |
Madhya Pradesh High Court
|
| Entities Involved |
Commissioner of Income-tax,
Krishi Upaj Mandi
|
| Judges |
S.K. Kulshrestha,
Smt. S.R. Waghmare
|
| Lawyers |
R.L. Jain,
Ms. Veena Mandlik
|
| Petitioners |
Krishi Upaj Mandi Samiti
|
| Respondents |
Commissioner of Income-tax
|
| Citations |
2009 SLD 2051,
(2009) 308 ITR 401,
(2008) 170 TAXMAN 515
|
| Other Citations |
CIT v. Krishi Upaj Mandi Samiti [IT Appeal No. 217 of 2007],
U.P. Forest Corpn. v. Dy. CIT [2008] 297 ITR 1/[2007] 165 Taxman 533 (SC),
Krishi Utpadan Mandi Samiti v. Union of India [2004] 267 ITR 460/139 Taxman 258 (All.),
Bihar State Forest Development Corpn. v. CIT [1997] 224 ITR 757/95 Taxman 1 (Patna),
Self Employers Service Society v. CIT [2001] 247 ITR 18/[2000] 113 Taxman 703 (Ker.),
CIT v. Krishi Upaj Mandi Samiti Morena [M.A. (I.T.) 12 of 2007, dated 8-1-2008]
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
12A,
11,
12AA
|