- (1.) This batch of appeals filed under Section 260A of the Income-tax Act, 1961 is against the, order passed by the learned Income-tax Appellate Tribunal, Jaipur Bench, Jaipur whereby the learned Income-tax Appellate Tribunal has held that the Assessee Krishi Upaj Mandi Samitis (in short "K.U.M.S.") of the concerned District in each case is entitled to be registered under Section 12A of the Income-tax Act, 1961 and further that such registration is liable to be granted from the inception of the Assessee-samitis and, therefore, entitled to consequential exemption under Section 11 of the Income-tax Act, 1961. The second set of appeals which is there in this batch is of cases where the learned Income-tax Appellate Tribunal condoned the delay for the purposes of moving application for registration under Section 12A of the Income-tax Act, 1961 and has directed the Commissioner of Income-tax to grant registration to the Assessee under Section 12A of the Income-tax Act, 1961.
(2.) The common question involved in all these cases is: Whether the Krishi Upaj Mandi Samiti constituted under the Rajasthan Agricultural Produce Markets Act, 1961 is such an institution which is entitled for registration under Section 12A of the Income-tax Act and as a consequence thereof is entitled to exemption under Section 11 of the Income-tax Act ?
(3.) The background in which this set of litigation has arisen is that all the agricultural produce marketing committees, i.e., K.U.M.S. which were constituted under the Rajasthan Agricultural Produce Markets Act, 1961 were enjoying the benefit under the Income-tax Act. Under Sub-section (20) of Section 10 of Chapter III of the Income-tax Act, 1961, the aforesaid benefit was being enjoyed by the samitis till such time as the definition of local authority under the Explanation to Sub-section (20) of Section 10 was not amended. The Explanation to Sub-section (20) of Section 10 was amended with effect from April 1, 2003, and the same became restricted in its application only to the institutions enumerated therein. For ready reference the provisions of Sub-section (20) of Section 10 of the Income-tax Act as it stands after the amendment vide the Finance Act, 2002, with effect from April 1, 2003 reads as follows: (20) the income of a local authority which is chargeable under the head 'Income from house property', 'Capital gains' or 'Income from other sources' or from a trade or business carried on by it which accrues or arises from the supply of a commodity or service (not being water or electricity) within its own jurisdictional area or from the supply of water or electricity within or outside its own jurisdictional area. Explanation.-For the purposes of this clause, the expression 'local authority' means- (i) Panchayat as referred to in Clause (d) of Article 243 of the Constitution ; or (ii) Municipality as referred to in Clause (e) of Article 243P of the Constitution ; or (iii) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with the control or management of a Municipal or local fund ; or (iv) Cantonment Board as defined in Section 3 of the Cantonments Act, 1924 (2 of 1924).;