TMI Blog2018 (1) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellants - We could not find any exclusion from the tax entry which will apply to the appellants. Renting of vacant land - land used for commercial construction for renting out - Held that: - After 1.7.2010, the same will be liable to tax - reliance placed in the case of In The Matter of Greater Noida Industrial Development Auth. Versus Commissioner of Customs, Central Excise And 6 Others [2015 (4) TMI 661 - ALLAHABAD HIGH COURT]. Extended period of limitation - Held that: - the appellant is a statutory authority functioning as a local Government. The nature and status of the appellant is such that there can be no allegation of malafide, willful intend to evade government tax - the demand for the extended period cannot be sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11-2012. Penalties were also imposed under Section 76, 77 and 78 of the Finance Act, 1994. 3. Ld. Counsel for the appellant submitted on the following lines:- (a) The appellant is a local Government Authority acting in terms of statutory provisions and the Constitution of India to provide civic amenities as well as to undertake welfare activities in pursuance of the Government policies. (b) Though the shops were rented out on a consideration called rent , in fact, these allotments are scheme based and not to be considered as commercial activity liable to tax. (c) Similarly, the vacant land is also provided for construction and renting out to various beneficiaries and cannot be taxed as renting of immovable property for commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed for commercial purposes. We have perused sample copies of agreements. The appellant could not place on record any exemption extended to them either due to their status or due to the purpose for which the said shops were rented out. These shops were given to a particular sections of people in terms of a Scheme announced by the Government, by itself, does not take away the tax liability. Renting of immovable property service is with reference to renting, leasing, licensing, or other similar arrangement of immovable property for use in course for furtherance of business or commerce. .The exclusion given is with reference to renting of such property by religious body or education body. We could not find any exclusion from the tax entry wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the demand on limitation also. We note that the appellant is a statutory authority functioning as a local Government. The nature and status of the appellant is such that there can be no allegation of malafide, willful intend to evade government tax. We hold that the demand for the extended period cannot be sustained in the present facts of the case. On the same reasoning, no penalty can also be imposed on the appellant. Accordingly, the demand should be restricted to the normal period in terms of Section 73(1) and the penalties are set aside. 10. In view of the above discussions and analysis, while upholding the tax demand for normal period, we direct the jurisdictional authorities to re-quantify the tax liability applying correct rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
