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2016 (8) TMI 1305 - HC - Income TaxEligibility to registration under Section 12A - whether activities of Development Authority can be said to be 'charitable' as defined under Section 2(15)? - Held that:- Another statutory body, namely, Krishi Utpadan Mandi Samiti constituted under U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (hereinafter referred to as "Act, 1964") was also registered under Section 12AA of Act, 1961 and the question whether amount transferred to Mandi Parishad would constitute application of income for 'charitable purpose' under Section 11(1)(a) of Act, 1961 has been decided against Revenue by Supreme Court in Commissioner of Income Tax Vs. Krishi Utpadan Mandi Samiti [2012 (10) TMI 26 - SUPREME COURT ] wherein held that keeping in mind the statutory scheme of 1964 Adhiniyam, whose object falls u/s 2(15) of 1961 Act, there is no doubt that the assessee satisfies the conditions of Section 11(1)(a) of 1961 Act. Therefore, income has been applied for charitable purposes. Also, Assessing Officer had erred in invoking Section 12(1) since question of “control” may be relevant in the context of Section 11(1)(d) or u/s 12(1). - Decided in favour of assessee
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