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2016 (7) TMI 1188 - AT - Income TaxGrant of registration under Section 12A - Held that:- We are in agreement with the contention of the Ld Senior Counsel of the appellant that the activities of the appellant are under complete control of State Government having no profit motive and for the purpose of charitable activities of general public utilities therefore, the CIT(E) was not justified and correct in dismissing application of the assessee. CIT(E) dismissed application of assessee for grant of registration under section 12A of the Act, by considering the irrelevant fact and by taking a hyper technical approach and he has not followed procedure for grant of registration as prescribed under section 12AA of the Act. At the same, we observed that the appellant successfully demonstrated that it has been created by the special act of the state i.e. UPIDA 1976 for the purpose of the development of infrastructure of a specified industrial area with a predominant purpose of creating and developing facility for development of industries in the state and its legal existence is akin to a municipal corporation for development of facilities in the specified area which is a charitable activity for the welfare of public at large and thus the same is an activity of general public utility. We are satisfied that there is no prime object or aliment of earning profit as private developer or builder and activities acquiring of land and selling developed property is an incidental and profit earned therefrom has to be used towards objects of the appellant which are of charitable purposes and thus newly inserted proviso to section 2(15) of the Act, cannot be pressed into service for denial of registration under Section 12A of the Act. Finally, we are inclined to hold that the appellant is entitled for registration under section 12A (1) (a) of the Act, and thus impugned order of the CIT(E) is dismissed and he is directed to grant registration under section 12A of the Act to the appellant authority. - Decided in favour of assessee.
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