TMI Blog2012 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... apply mutatis mutandis to the special planning authority as they apply to the development authority as if the notified area were to be a new town, subject to certain modifications including the deletion of section 113A. Under section 160, upon dissolution of the special planning authority or new town development authority, all properties, funds and dues vest in the State Government and all liabilities are enforceable against the State Government - stay is granted of the recovery of the dues - 2297 of 2011 - - - Dated:- 21-10-2011 - CHANDRACHUD D. Y., DR., SAYED A. A., JJ. JUDGMENT 1. In these proceedings under article 226 of the Constitution, the petitioner has questioned an order of the Commissioner of Income-tax declining to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, are pending before the Commissioner of Income-tax (Appeals). For the assessment year 2006-07, the petitioner incurred a loss in respect of projects other than the project at Navi Mumbai. There is an excess of income over expenditure incurred for Navi Mumbai. In response to a notice under section 148 the petitioner filed a return of income declaring a loss of Rs. 16.18 lakhs. A reference was made to a special auditor under section 142(2A) who submitted a report and a supplementary report revising the total income to Rs. 2430.67 lakhs. The special auditor, it appears, accepted that the petitioner is acting as an agent of the Government for the Navi Mumbai project. A notice was issued under section 142(1) following which an assessment orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the preamble of the MR TP Act, 1966. (c) In order to create the new town of Navi Mumbai in a planned manner, the Government of Maharashtra, in exercise of the powers under section 113(3A) of the MR TP Act, appointed the CIDCO as the 'New Town Development Authority'. (d) The State Government, in exercise of its powers under section 40(1)(b) of the MR TP Act, also appointed CIDCO as the special planning authority for the new towns of New Aurangabad, New Nashik, New Nanded, Tarapur, Walunj Mahanagar, Oros, Vasai Virar Subregion, Nagpur and Mhaismal Projects. (e) The appointment of CIDCO as a new town development authority and special planning authority is with an intent to carry out objects of new towns as a statutory agent of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious statutory obligations of the corporation, including providing housing at affordable and concessional rates, allotment of land to the co-operative housing societies at fixed rate, the object of the corporation is not commercial for earning profit. On the contrary, CIDCO is acting as a statutory agent of the State Government to carry out development of new towns who also per- forms functions of the local authority for these new towns. In view of the above facts, it is stated that CIDCO is not liable to income-tax." 6. The grievance of the petitioner is that these submissions have not been dealt with by the Assessing Officer prima facie, for deciding the application for stay. Diverse circumstances have been relied upon in support of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance of convenience. The learned counsel submitted that in the present case, there is no financial hardship and that some part of the demand should be directed to be paid. 8. The material before the court indicates that for the assessment years 2003-04, 2004-05 and 2005-06 the Assessing Officer accepted the position of the petitioner as an agent of the State in respect of the Navi Mumbai project. The petitioner was, however, brought to tax in respect of its other projects but the matter is pending in appeal. Section 113(1) of the Maharashtra Regional and Town Planning Act, 1966, provides that the State Government may designate an area as a site for a proposed new town where it is satisfied that it is expedient in public interest tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r VI of the Act apply mutatis mutandis to the special planning authority as they apply to the development authority as if the notified area were to be a new town, subject to certain modifications including the deletion of section 113A. Under section 160, upon dissolution of the special planning authority or new town development authority, all properties, funds and dues vest in the State Government and all liabilities are enforceable against the State Government. 10. In a judgment in Percival Joseph Pareira v. Special Land Acquisition Officer (Writ Petition No. 1211 of 2009 decided on November 7, 2009), a learned single judge while relying on the provisions of the MR TP Act has held that CIDCO was appointed as an agent of the State Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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