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2021 (4) TMI 443 - AT - Income TaxExemptions u/s.11 and 12 - Charitable activity u/s 2(15) - assessee is AOP (Trust), which was constituted by the Government of Gujarat by enacting the Gujarat Housing Board Act, 1961 for the purpose of undertaking the housing scheme. The assessee is engaged in the sale of flats/house of various kinds which are available for all income group namely higher income group, middle income group, lower income group and economically weaker section - Accordingly, the AO was of the view that the activities of the assessee are commercial in nature and the AO disallowed the claim of the assessee under section 11 - HELD THAT:- As decided in own case [2018 (11) TMI 1121 - ITAT AHMEDABAD] object and purpose for which the assessee is established/constituted under the provisions of the Gujarat Town Planning Act and collection of fees and cess is incidental to the object and purpose of the Act, even the case would not fall under second part of proviso to Section 2(15) of the Act. We deem it fit and proper to hold that the authorities below were in error in invoking proviso to Section 2(15) and declining the benefit of Section 11 to the assessee. We see no point in remitting the matter to the file of the Assessing Officer for examination de novo, in the light of the above legal position as was the decision of the coordinate bench in immediately preceding assessment year, since all the related facts are on record and, unlike in the immediately preceding assessment year, it is not a case of ex parte best judgment assessment order. Such an exercise will unnecessarily delay the matter reaching finality. In any case, no specific points, on which further examination is required, were pointed out to us. The grievances of the assessee are thus upheld and the Assessing Officer is directed to allow the benefits of exemption under section 11 to the assessee. The assessee gets the relief accordingly. - Decided in favour of assessee.
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