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2022 (2) TMI 334 - AT - Income TaxExemption u/s 11 - CIT-A rejected application observing that GDA is not Institution working for charitable purposes since it was not registered under Indian Trusts Act, 1982 or Societies registration Act, 1860 - CIT(A) held that the assessee is engaged in development of land and in accordance to the Uttar Pradesh Urban Development Act 1973 - whether Section 2(13) of the Income Tax Act, 1961 is applicable to the functions of the assessee or whether it is Section 2(15) of the Act which needs to be invoked? - HELD THAT:- As per Section 7 of the Act, the object of authority is to promote and secure the development of the area according to the plan and for that purpose authority shall have power to acquire, hold, manage and dispose of land and other property to carry out building, engineering, mining and other operations to execute the works in connection with the supply of water and electricity dispose of sewage and to provide and maintain other services and amenities and generally to do anything necessary end expedient for the purpose of such development and for purposes incidental thereto. Provided that save as provided in this act nothing contained in this act shall be construed as authorizing the disregard by the authority of any law for, the time being in force. Thus, the above said act authorizes the assessee to undertake any activity to fulfill the main object of development of land in the specified area. In the instant case, the AO has not brought anything on record that distinguishes the clauses of the trust that were available before the authorities while granting registration u/s. 12AA of the Act. There has been no change in the objects of the assessee. Hence, we hold that invoking of provisions of Section 2(13) against the relevant provisions of Section 2(15) is not legally sustainable Hence, we hold that the decision of the ld. CIT(A) cannot be sustained. Having held that the assessee is eligible for deduction u/s. 11 of the Act, the matter is being remand back to the file of the ld. CIT(A) for the limited purpose of recomputing the eligible deduction in accordance with the provisions of Section 2(15).Having held that the assessee is eligible for deduction u/s. 11 of the Act, the matter is being remand back to the file of the ld. CIT(A) for the limited purpose of recomputing the eligible deduction in accordance with the provisions of Section 2(15) - Decided in favour of assessee.
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