Agricultural Produce Marketing Committee Vs ITO (ITAT Bangalore)
The assessee, an Agricultural Produce Marketing Committee (APMC), faced reassessment and taxation on cash deposits across multiple years (AYs 2015–16, 2016–17, 2018–19, 2019–20). The CIT(A) had dismissed appeals solely on delay (84 days) without condoning it.
The ITAT Bangalore held that the delay was justified, considering the peculiar situation where the assessee’s PAN was wrongly classified as a trust, making it impossible to file returns correctly or claim exemption under Section 10(26AAB). The Tribunal termed the CIT(A)’s approach as overly technical (pedantic) and condoned the delay.
On merits, the Tribunal noted that it is undisputed that the assessee is an APMC, whose income is fully exempt under Section 10(26AAB). It held that a wrong PAN status cannot deny statutory exemption, especially when the nature of the entity is clear.
Accordingly, all assessment orders were set aside, and the AO was directed to treat total income as NIL for all years. The appeals were allowed in full, and stay petitions became infructuous.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
1. The Agricultural Produce Marketing Committee Gundlupet [Assessee/Appellant] has filed four Appeals for the Assessment Years 2015-16, 2016-17, 2018-19, and 2019-20, all concerning a similar issue. The National Faceless Appeal Centre, New Delhi [the ld. CIT (A))] addressed these matters by a common consolidated Appellate Order dated 26.08.2025, which involved comparable facts and arguments from both parties. The Appeals of the Appellant were dismissed in limine due to the delay in filing, without condonation. Consequently, these Appeals are considered collectively under this common order for the sake of convenience.
