2020 (12) TMI 12 - ITAT VISAKHAPATNAM - Income Tax

Head Note / Extract:
Eligibility for exemption u/sec. 11 - Denial of exemption as activities of the local authorities as commercial in nature because the assessee is engaged in the activities of sale of plots, constructed houses, collection of various fees etc. - as per revenue assessee is carrying out sale of sites and houses and earning profits on such real estate activities - HELD THAT:- On appeal this tribunal has considered the above issues in detail in its order dated 20/03/2020 and held that the assessee is carrying on the activities in accordance with the objects and purpose for which it was established and there is no commercial activities. Accordingly, restored the registration and directed the AO to grant exemption u/sec. 11 to the assessee. Orders passed for the A.Ys. 2005-06 to 2007-08 & 2010-11 are covered by the order of this tribuna [2020 (3) TMI 1018 - ITAT VISAKHAPATNAM] hence, we set aside the orders of the lower authorities and direct the AO to allow the exemption u/sec. 11 and compute the income as per secs. 11 to 13 of the Act. Accordingly, appeals of the assessee are allowed.