Commissioner of Income Tax-II, Jabalpur v. Krishi Upaj Mandi Samiti, Rewa

1. FACTS OF THE CASE

Krishi Upaj Mandi Samiti, Rewa applied for registration on 15 September 2006. The Commissioner refused on 15 January 2007, but the Tribunal directed registration. The Samiti collected a 2% levy, with 1.2% transferred for village roads and the balance used for farmer facilities and administration.

Source: PDF p. 2

2. DISCUSSION BY THE COURT

The Court identified charitable objects and genuine activities as the registration requirements under the then-applicable section 12 AA. It distinguished section 13 issues arising at the section 11 exemption stage and followed market-committee precedents.

Source: PDF p. 5

3. JUDICIAL DECISION

Revenue’s appeal was dismissed, leaving the Tribunal’s registration direction effective.

Source: PDF p. 7

4. OUTCOME

Registration was upheld; the order did not grant unconditional exemption for every assessment year.

Source: PDF p. 7

5. Expert Comments

AKHB editorial analysis, distinct from the Court’s findings.

Separate registration from annual exemption

The Court’s distinction between sections 12 AA and 11/13 prevents registration from being misreported as final clearance of every receipt or expenditure in every year.

Source: PDF p. 5

The objects and actual activities supported the conclusion

Farmer protection, fair prices, roads and storage facilities supplied the factual foundation. The decision does not establish that every fee-collecting body is charitable.

Source: PDF p. 2

Preserve the correct chronology and scope

The decision is dated 25 November 2019; the digital signature is later. AY 2003-04 appears as background to entry into the tax net, not as a single annual assessment adjudicated by this registration appeal.

Source: PDF p. 1