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2017 (6) TMI 82 - HC - Income TaxRegistration of the respondent under Section 12AA - cancellation of registration as assessee has not produced /maintained the books of accounts separately and /or individually plot wise - object and purpose for which AUDA has been constituted - Held that:- Merely because AUDA is selling the plots by holding public auction, the activities of the respondent – assessee cannot be said to be in the nature of trade or business. By the aforesaid, it cannot be said that the activities of AUDA are not in consonance with the object and purpose for which the same has been constituted and as the respondent – assessee is providing public utility services, the same can be said to be charitable purpose within the meaning of Section 2(15) of the Income Tax Act. As in the books of accounts maintained, which is audited by the office of the Auditor General, income from sale of the plots have been specifically disclosed and mentioned. There is no requirement to maintain the books of accounts individually plot wise. By the aforesaid itself the activities of the statutory body cannot be doubted. Considering the aforesaid facts and circumstances of the case, more particularly, considering the relevant provisions of the Gujarat Town Planning Act and the object and purpose for which AUDA has been constituted and the activities to be carried out by AUDA, which is in the nature of public utility services, the learned tribunal has rightly quashed and set aside the order passed by the Director of Income Tax (Exemption) cancelling the registration under Section 12AA of the Income Tax Act. - Decided in favour of assessee.
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