IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No.284 of 2009 (O&M) Date of decision: 14.7.2009 The Commissioner of Income Tax, Panchkula -----Appellant Vs. Market Committee, Siwan District Kaithal Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:- Mr.Yogesh Putney, Sr.Standing Counsel for the revenue. Adarsh Kumar Goel,J. Delay condoned. The revenue has preferred this appeal under section 260A of the Income Tax Act, 1961 against the order of Income Tax Appellate Tribunal, Chandigarh Bench (SMC) Chandigarh dated 31.5.2007, in ITA No.130/Chandi/2007, for the assessment year 2003-04, proposing to raise following substantial questions of law for opinion of this Court:- (i) Whether on the facts and in the circumstances of the case, the ld. ITAT ITA No.284 of 2009 (O&M) was right in law in dismissing the appeal of the Revenue, against the order of the CIT(A), directing the AO to assess the income of the assessee, in the status of charitable trust, as per Sections 11 to 13 of the Income Tax Act, ignoring the fact that Market Committee is neither a trust nor a charitable institution, as the income neither derived from the property, held under trust, wholly for charitable or religious purposes nor from voluntary contributions? (ii) Whether on the facts and in the circumstances of the case, the ld. ITAT was right in law in dismissing the appeal of the Revenue, against the order of the CIT(A) directing the AO to assess the income of the assessee, in the status of charitable trust, as per Sections 11 to 13 of the Income Tax Act, ignoring the fact that income derived by the Market Committee from collection of market fee, composition fee and license fee as well as from purchase of land and sale of plots is purely derived from commercial activity and the same does not come within the ambit of sections 11 to 13 of the Income Tax Act? 2 ITA No.284 of 2009 (O&M) (iii) Whether on the facts and in the circumstances of the case, the Ld. ITAT was right in law in holding that the Market Committee is a charitable trust particularly when after insertion to amendment under section 10(20) by the Finance Act 2002, the Market Committee has been excluded from the definition of local authority and exemption under section 10(20) has been withdrawn? (iv) Whether in the facts and circumstances of the case the Market Committee is entitled to registration under section 12AA of the Income Tax Act, 1961 as it does not carry charitable activities within the meaning of Section 2(15) of the Income tax Act, 1961?” Learned counsel for the revenue does not dispute that the matter is covered by earlier judgment of this Court in CIT v. Market Committee, (2007) 294 ITR 563. Accordingly, this appeal is dismissed. (Adarsh Kumar Goel) Judge 3 ITA No.284 of 2009 (O&M) July 14, 2009 (Daya Chaudhary) ‘gs’ Judge 4