Agricultural Produce Market Committee vs Commr.Of Income Tax & Anr

(b) independent Marketing Committees known as "Marketing Committees of Market of National Importance" in relation to such markets, notwithstanding that such area falls within the local limits of the jurisdiction of any other Marketing Committee or Committees already functioning in that area. (2) The Government may, after consideration of such aspects as, the turnover, upstream catchment area, down-steam servicing (number of consumers served), and price leadership (whether the market influences the price at the national level), declare an area as a special market area known as "Market area of the market of National Importance".

(iii) specifying any place or spot where a notified agricultural produce shall be stored or displayed for purpose of sale by open auction;

62. Power to levy and collect market fee--Every Marketing Committee shall levy and collect such fee (hereinafter referred to as the `market fee") not being in excess of, or less than, the amount determined by the Government by notification published in the official Gazette from every purchaser of notified agricultural produce sold in a market area.

66. Assessment market fee payable by commission agent and payment thereof--(1) If no return is furnished in respect of any period by the specified date, or if the Marketing Committee is not satisfied that the return furnished by commission agent is correct or complete, an officer of the Marketing Committee specifically authorized by it in this behalf (hereinafter referred to as the assessing officer) shall proceed in such manner, as may be prescribed in the bye-laws to assess, to the best of his judgment, the amount of market fee due from such commission agent.

operative marketing societies in the procurement and organization of profitable disposal of produce particularly the produce belonging to small and marginal farmers;

(2) Without prejudice to the generality of sub-section (1), every marketing committee shall, out of the "market fund"

(b) to the Government, the cost of any special or additional staff employed by the Government, in consultation with the marketing committee, for giving effect to the provisions of this Act in the market area.

(3) The Government shall determine the cost of the special or additional staff referred to in clause (b) of sub- section (2) and shall, where the staff is employed for the purposes of more than one marketing committee, apportion such cost among the marketing committees concerned in such manner as it things fit and the decision of the Government determining the amount payable by any marketing committee shall be final.

CHAPTER XI BUDGET AND ACCOUNTS

91. Budget and Account of a Marketing Committee-- (1) Everything marketing committee shall prepare and pass the budget on its income and expenditure for the ensuing year in the prescribed Form and shall submit it to the Board for sanction before the prescribed date. The Board shall sanction the budget with or without modification within three months from the date of receipt thereof. If the budget is not returned by the Board within three months, it shall be presumed to have been sanctioned.

(2) Copies of accounts, balance sheet and administrative report referred to in sub-section (1) shall be submitted to the Board and the Director by such time as may be prescribed."

(emphasis supplied by us)

(emphasis supplied by us) 30

33. We hold that AMC(s) is, therefore, not entitled to exemption under Section 10(20) of the 1961 Act after insertion of the said Explanation vide Finance Act, 2002 w.e.f. 1.4.03.

34. For the aforestated reasons, we find no merit in this batch of Civil Appeals and accordingly the said Civil Appeals are dismissed with no order as to costs.

August 21, 2008.