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2023 (4) TMI 392 - HC - Income TaxExemption u/s 11 - applicability of Section 2(15) - addition on account of premium on land and shades - Tribunal allowed the exemption under Section 11 and 12 - HELD THAT:- As correctly held by Tribunal The Assessee -Corporation was constituted under the Gujarat Industrial Development Act, 1962 for the purpose of securing and assisting rapid and orderly establishment and organization of Industrial areas and Industrial estates in the State of Gujarat and for the purpose of establishing the commercial centers in connection with establishment and organization of such industries. It is also held that it could not be said that the activities carried out by the Assessee were either in nature of trade, commerce or business, for Cess or Fee or any other consideration so as to attract the proviso to Section 2(15) and the same could be said to be for charitable purpose and consequently, the exemption under Section 11 was permitted. When this issue was taken up before the Apex Court [2022 (10) TMI 948 - SUPREME COURT] held that section 11(4A) must be interpreted harmoniously with Section 2(15), with which there is no conflict. Carrying out activity in the nature of trade, commerce or business, or service in relation to such activities, should be conducted in the course of achieving the GPU object, and the income, profit or surplus or gains must, therefore, be incidental. The requirement in Section 11(4A) of maintaining separate books of account is also in line with the necessity of demonstrating that the quantitative limit prescribed in the proviso to Section 2(15), has not been breached. Similarly, the insertion of Section 13(8), seventeenth proviso to Section 10(23C) and third proviso to Section 143(3) (all w.r.e.f. 01.04.2009), reaffirm this interpretation and bring uniformity across the statutory provisions. No substantial question of law has arisen.
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