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2017 (8) TMI 164 - AT - Income TaxGrant of registration u/s 12A (a) - charitable activities - claim of the assessee that it is an urban development authority engaged in the object of "advancement of any other object of general public utility‟ - scope of amendment made w.e.f. 01.04.2009 in provisions of section 2(15) - Held that:- Assessee placed list of various work which has been done by the assessee most of them are with respect to development of roads, lighting and sewage etc. It has also submitted the details of various area development and guidelines. At page 79 of the paper book it is submitted certain basic principles of charging price of the property which is based on market rate. It has also specified at page No. 80 of its paper book regarding acquisition of land which is also at prevailing circle rate. Therefore it shows that it acquires the land for development at market rate and also sales the same after development at market rate. In fact it is doing similar objects which an infrastructure company does by acquiring the land in similar fashion. Therefore, there is no difference between the activity carried out by the assessee compared to activity carried out by any other private organization for profit. Therefore on reading the financials presented before us and the various projects demonstrated it is apparent that the activities of the assessee has "profit motive" and therefore it is carrying on the business. Order of High Court of Jammu and Kashmir in case of Jammu Development Authority Vs. CIT [2013 (11) TMI 1578 - JAMMU AND KASHMIR HIGH COURT] is the only decision of the High Court which deals with the provisions of section 2(15) amended w.e.f. 01.04.2009 applicable to the persons carrying on objects of general public utility. Therefore, we respectfully following the decision of the Hon‟ble Jammu and Kashmir High Court hold that the assessee M/s. Mussoorie Dehradun Development Authority is not formed for “charitable purposes” as defined u/s 2(15) of the Income Tax Act and hence is not entitled to registration u/s 12A (a) of the Act. - Decided against assessee.
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