TMI Blog2010 (2) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... . In holding that the Section 12 AA of the Income Tax Act, 1961 is for the procedure for registration for trust/society or institution only and therefore section 12 AA for registration is not applicable on the appellant-MDA. 3. In holding that since the appellant is a State Government Authority and is not a trust/society or institution and therefore it is not entitled for Registration under section 12A/12AA of the Act. 4. In holding that the activities of the appellant are not charitable. 5. In cancelling the Registration under section 12AA(3) of the Income Tax Act, 1961 by ignoring the facts that the issue of registration to similar Development Authorities is also covered by the orders passed by Hon ble ITAT- Delhi Bench and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the ld. CIT. It has been contended that the object of the creation of the MDA is to make systematic planning and development of the area under its jurisdiction; that to achieve such objects, the MDA performs the activities of making the master plan by earmarking the agricultural, commercial, industrial and residential area of the city, to make rules of construction in all areas and to ensure proper development of roads and parks, sewerage lines, electric poles in residential colonies and sectors; that sometimes, the MDA itself undertakes the activities of building roads, sewerage lines and development of park, etc. in approved colonies for the planned and systematic development of the city; that the local authorities were treating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a statutory Authority created under the provisions of a statute is entitled to the status of a charitable institution u/s 11 of the I.T. Act and is entitled to be registered as a charitable trust. For the proposition that the Development Authorities situated under the Uttar Pradesh Urban Planning and Development Act, 1973 are eligible for registration u/s 12AA of the I.T. Act and that accordingly, registration to such Development Authorities is to be allowed, reliance has been placed on the following decisions:- 1. Khurja Development Authority (ITA No. 1851(Del)2009 order dated 14.07.2009); 2. Saharanpur Development Authority (ITA No. 5008(Del)2007 order dated 20.06.2008); 3. Aligarh Development Authority (ITA No. 168(Ag.)/De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw and keeping in view the judicial precedents on this issue, the Tribunal relied on the Tribunal decision dated 25.7.2005 in ITA No. 1690(Luck) of 2003 for assessment year 2003-04, in the case of U.P. Awas Evam Vikas Parishad wherein, it has been held as follows:- 39. From the perusal of the objects of the Parishad, we find that the objects of the Parishad were to frame and execute the housing and improvement schemes and other projects, to plan and coordinate various housing activities in the State and to ensure expeditious and efficient implementation of housing and improvement schemes in the State. As regards the other Authorities before us, we have perused the UPUPD Act, 1973. Section 4 of the said Act provides that State Governme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. DR has pleaded that the provisions of Section 36(1)(xii) were brought on the statute to meet the difficulties due to deletion of the provisions of Section 10(20A) of the Act. Admittedly, section 36(1)(xii) falls under the head profits and gains of business . As the assessees before us were not carrying on any business, the question of applying the provisions of section 36(1)(xii) does not arise. For the sake of repetition, we may mention that unless the Authorities were pursuing the objects of general public utility, no land could be acquired by State Government for them. 43. We may also observe that granting registration under section 12-AA of the Act does not give blanket exemption to the assessees under section 11 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uine. In our opinion, it is not easy, in case of statutory body, like market board or market committee controlled by Governments to hold, that activities of such bodies are not genuine. We are, therefore, unable to agree that these cases were not fit cases for recording satisfaction as required under section 12-AA of the Income-tax Act. About object of the institutions, we have already held that those are genuine and are of charitable nature. The other objections have been raised by the Revenue in the impugned orders and during the course of arguments before us like the committees and boards being managed by public servants, collection of fines by committee, no voluntary contribution by outsiders etc. We do not find any substance in these o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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