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2016 (5) TMI 1350 - AT - Income TaxGrant of registration under sec. 12AA rejected - whether appellant is a profit making body and is not carrying out any charitable activities? - Greater Noida Industrial Development Authority - Held that:- Vide notification No. 6710/77-4-2001-56BHA/99 dated 24.12.2001, the State Government in exercise of powers under the proviso to clause (i) of Article 243Q of the Constitution of India has specified the Greater New Okhla Industrial Development Area to be an Industrial Town-ship w.e.f. the date of the publication of the said notification in the official gazette. In this notification, it has been mentioned that having regard to the size of Greater New Okhla Industrial Development Area which has been declared as an industrial development area by government notification dated 28.1.1991 and the municipal services are being provided by the Greater New Okhla Industrial Development Authority in that area. Thus, it is clear that the appellant has been constituted by the State Act and it is assigned not only with the object of development of industrial area but would be an industrial town-ship and would provide services of a municipal corporation. Thus, the objects of the appellant are in the nature of public utility. When it is not the case of Revenue that profit from the activities of acquiring land and selling it after development is being utilized not in the objects of the appellant, it cannot be compared with the activities carried out by a builder developing a colony. The appellant might be selling certain property at market rate through auction after developing that property but it is not the main object of the appellant. Such activity is incidental to the objects of the appellant. We thus come to the conclusion that the appellant is very much entitled for the claimed registration under section 12A(1)(a) of the Act. We thus while setting aside the order impugned direct the Learned CIT(E) to grant registration under sec. 12AA of the Act to the appellant. The grounds are accordingly allowed in favour of assessee.
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