SATISH CHANDRA,J. - (1.) ALL the appeals have been filed by the department under Section 260-A of the Income Tax Act against the consolidated judgment and order dated 28.2.2007 passed by the Income Tax Appellate Tribunal, Lucknow.
(2.) THE brief facts of the case are that Krishi Utpadan Mandi Samitis i.e. assessees were created by a Notification in exercise of power under Section 12 of the Krishi Utpadan Mandi Adhiniyam, 1964 with the object to regulate the sale and purchase of the agricultural produce and also to develop the facilities for the farmers, so that the farmers can get best price of their produce without middle man. It was provided by the said Act that in every market area, there shall be a committee to be called 'Krishi Utpadan Mandi Samiti' of that area. Section 13 of the U.P. Krishi Utpadan Mandi Adhiniyam, 1964 provides for the constitution of the committee. The committee was authorized to charge the fee as 'Mandi Shulk' and also other charges for providing the warehousing facilities Under Section 12(2), each committee was declared as a 'local authority'. By virtue of Section 10(20) of the Income Tax Act, these committees were exempted from the clutches of the Income Tax Act. However, the said provision was amended w. e. f. 1.4.2003 and these assessees were brought under the purview of the Income Tax Act. So these committees claim to be charitable institutions. For this purpose, necessary applications were made under Section 12-A which were rejected by the Commissioner of the Income Tax department but the said registration was granted by the Tribunal vide its impugned order. Not being satisfied, the department has filed the present appeals under Section 260-A of the Income Tax Act.
(3.) ON 21.4.2008 and 15.5.2008, this Court has admitted these appeals on the following substantial questions of law:- I. Whether on the facts and in the circumstances of the case the learned Income Tax Appellate Tribunal was justified in condoning the delay in filing the application for registration without making a case of ''sufficient cause' in the instant case. II. Whether the learned Income Tax Appellate Tribunal was justified in allowing the registration u/s 12 AA even after accepting the facts as correct which were mentioned in the order u/s 12AA, and which were violative of provisions of Section 11 and 12 of the I.T. Act. III. Whether the learned Income Tax Appellate Tribunal's decision to waive/relax the statutory conditions laid down under Section 11 and 12 for grant of Registration u/s 12AA was in accordance with law and the facts. Substantial Question of Law No.1 ;