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2021 (3) TMI 1223 - AT - Income TaxExemption u/s 11 - activity of the various city development authorities as charitable or not? - CIT- A allowed the exemption - HELD THAT:- The issue of treating the activity of the various city development authorities as charitable or not has been adjudicated by various Courts and Tribunals which consistently held that the activity of acquiring land, development of plots and construction of residential as well as commercial places is an activity considered as charitable in nature. “Infrastructure Development Fund” in the instant case , the AO held that the amount should have been first credited in the income and expenditure account and the amount spends out of the same should have been debited to this account. It is an undisputable fact that the fund is not under the exclusive control of the assessee and the expenditure to be incurred out of the infrastructure funds are approved on the recommendation of high powered committee. Hon’ble Allahabad High Court in the case of Lucknow Development Authority [2013 (9) TMI 570 - ALLAHABAD HIGH COURT] has held that the money transferred to the Infra structure fund account is to be utilized for the purpose of the projects as specified by the Committee having constituted by the State Government and cannot be treated as belonging to the authority or receipt is taxable nature in its hand. In the absence of any change in the factual matrix brought to our notice by either of the parties, we hereby decline to interfere with the order of the ld. CIT (A). - Decided against revenue.
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