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2005 (7) TMI 668 - AT - Income TaxDenial of application filled for registration u/s 12AA - charitable institution - object of executing housing and improvement schemes - activities of the authority are not charitable in nature within the meaning of section 2(15) of the Act - HELD THAT:- From the perusal of the objects of the Parishad, we find that the objects of the Parishad were to frame and execute the housing and improvement schemes and other projects: to plan and coordinate various housing activities in the State and to ensure expeditious and efficient implementation of housing and improvement schemes in the State. As regards the other Authorities before us. We have perused the UPUPD Act, 1973. Section 4 of the said Act provides that State Government may by notification in the Gazette constitute for the purposes of this Act, an Authority to be called the Development Authority for any development area. The Authorities before us have been constituted by the Government under this section. Section 7 of the said Act has also provided for the objects of these Authorities as mentioned. Needless to say that as per clause 4 of Land Acquisition Act. the land could be acquired only for public purposes. Section 57 of the said Act also provides that Authorities could make its bye-laws with the approval of the State Government. Section 58 provides that in case of dissolution of the Authority, all the properties, funds and dues which are vested in or realizable by the Authority, shall vest in or to be realizable by the State Government. Various sections of the said Act make it abundantly clear that the activities of the Authorities were aimed at public purposes and not personal one. We, therefore, have no hesitation in holding that the activities of the assessees before us are for enhancement of general public utility and the ld. CIT was not justified in relating registration u/s 12AA of the Act. From the perusal of various documents on record, there is no dispute that the activities of the assessees before us were genuine and object of the assessees was in consonance with its creation. Even on these two grounds, the ld. CIT was not justified in refusing registration u/s 12A of the Act. The ld. CIT could not take shelter of any other outer source for refusing registration u/s 12A of the Act. In the present appeals. CIT has not brought any material nor recorded any finding to hold that activities of assessees were not genuine. In our opinion, it is not easy, in case of statutory body, like, market board or market committee controlled by Governments to hold, that activities of such bodies are not genuine. We are, therefore, unable to agree that these cases were not fit cases for recording satisfaction as required u/s 12AA of the by Income-tax Act. About object of the institutions, we have already held that those are genuine and are of charitable nature. Some other objections have been raised by the Revenue in the impugned orders and during the course of arguments before us like the committees and boards being managed by public servants, collection of fines by committees, no voluntary contribution by outsiders etc. We do not find any substance in these objections. At the stage of registration, the learned Commissioner has only to record his satisfaction about the genuineness of activities of the institution and its charitable purposes. The above conditions are not shown to be not satisfied in these cases. We, therefore, do not see any hurdle in their claim relating to Registration u/s 12AA. Thus, we are of the view that the assessees are entitled to registration under section 12AA of the Act. We therefore, direct, the ld. CIT to register all the authorities in appeal before us u/s 12AA of the Act. In the result, all the appeals directed by the assessees are allowed.
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