Krishi Utpadan Mandi Vs ITO (ITAT Lucknow)
Summary: The assessee, a statutory Krishi Utpadan Mandi Samiti constituted under the Uttar Pradesh Mandi Adhiniyam, 1964, filed its return of income for A.Y. 2019-20 on 31-10-2019. The return was processed under section 143(1), and the exemption claimed in the original return was disallowed, resulting in a tax demand of Rs. 4,89,73,685/-. The assessee subsequently filed an application under section 154 dated 08-12-2022, stating that its income was exempt under section 10(26ABB) of the Income Tax Act, 1961. The relief was not granted, and the CIT(A) dismissed the appeal.
Before the Tribunal, the assessee submitted that it was admittedly a statutory Agriculture Produce Market Committee constituted under the Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964 and was entitled to exemption under section 10(26ABB). It contended that the wrong reference to section 10(23C) in the return was an inadvertent mistake and that exemption could not be denied on this technical ground. The assessee also relied upon relief granted in its own cases for A.Ys. 2015-16, 2016-17 and 2017-18.
The Revenue submitted that the assessee had claimed exemption under the wrong provision and had not filed a revised return mentioning section 10(26AAB). Reliance was placed on Goetze (India) Ltd. V. Commissioner of Income-tax [2006] 157 Taxman 1(SC).
