Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1256 - AT - Income TaxBenefit of exemptions u/s.11 denied - charitable activity u/s 2(15) - assessee is registered u/s.12A - whether the assessee trust is entitled to exemption u/s 11 & 12 of the Act on surplus arising from carrying out planned development of areas as defined and designed by the Government of Gujarat and for carrying out infrastructural activities relating thereto such as construction of roads, bridges, drainage systems, water connection etc. for the benefit of public at large? - HELD THAT:- The main object of the assessee is contribution towards planned and controlled development for the entire urban development area and such activity falls under the category of 'advancement of general public utility. When the activities of the assessee can be said to be in the nature of trade, commerce and business, considering the proviso to Section 2(15), the activities of the assessee cannot be said to be for charitable purpose. We find that the issue is no longer res integra. The Hon’ble Gujarat High Court in the case of AUDA [2017 (5) TMI 1468 - GUJARAT HIGH COURT] itself has adjudicated the issue in favour of the assessee. The CIT(A) has taken cognizance of the binding decision of the Hon’ble Gujarat High Court in great length and has rightly reversed the action of the AO and held that the assessee is entitled to the relief claimed. We find no error in the order of the CIT(A) in view of the decision rendered in AUDA by the Hon’ble Gujarat High Court. We therefore decline to interfere with the order of CIT(A). - Decided against revenue
|