TMI Blog2017 (5) TMI 1607X X X X Extracts X X X X X X X X Extracts X X X X ..... the Jodhpur Region which is undoubtedly falls within the expression 'advancement of any other objects of general public utility' within the definition of Section 2(15) of the Act of 1961 and therefore, on account of profit being earned by it through some of the activities, undertaken by it, which are ancillary or incidental to the main object of general public utility, it does not cease to be charitable in character so as to render it ineligible to claim registration under Section 12A read with Section 12AA of the Act of 1961 - decided in favour of assessee. - D.B. Income Tax Appeal No. 568/2009 - - - Dated:- 26-5-2017 - MR. K. S. JHAVERI AND MR. VIRENDRA KUMAR MATHUR, JJ. For The Appellant (s) : Mr. R.B. Mathur For The Respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lan and Zonal Development Plans; formulation and sanction of the projects and schemes for the development of Jodhpur Region or any part thereof; execution of the project and schemes directly by itself or through a local authority or other agency; coordinating execution of projects or schemes for the development of Jodhpur Region supervision or otherwise ensuring adequate supervision over the planning and execution of any project or scheme the expenses of which in whole or in part are to be met from Jodhpur Region Development Funds; preparing schemes and advising the concerned authorities, department and agencies in formulating and undertaking schemes for development of agriculture horticulture, forestry, dairy development, transport, commun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or any other law for time being in force, all money received by the JDA from the disposal of land buildings and other property movable and immovable and other transactions including lease money, urban assessment development charges and other similar charges and all money received by way of rents and profits or in any other manner or from any other source. A fortiori, as per the mandate of Section 54 of the JDA Act, all property funds and other assets vesting in the JDA shall be held and applied by it for the purposes and subject to the provisions of the Act. Suffice it to say that the entire funds of the JDA is mandatorily required to be utilized for discharging the functions to achieve the object of integrated development of Jodhpur Region ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act of 1961, as noticed above, the UIT, Sri Ganganagar, a statutory body, has been constituted and established under Section 8 of UIT Act for the purpose of carrying out improvement of urban area of Sri Ganganagar. It is to be noticed that for achieving the object as mandated by Section 29 of the UIT Act, the UIT frames schemes for improvement of the specified urban area, which inter alia may provide for the acquisition of any land or other property necessary or effected by the execution of the scheme; the re-laying out of any land comprised in the scheme; the construction and re-construction of the buildings; the formation, construction and alteration of streets; the closure or demolition of dwellings or portion of the dwellings un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t charges in terms of Section 62 of the UIT Act, but then, such activities undertaken by the UIT are apparently incidental and ancillary to its main object of improvement of specified urban area. It is pertinent to note that as per the mandate of Section 61 of the UIT Act, the UIT is under an obligation to constitute a fund to be called 'Improvement Fund' and as per the mandate of sub-section (2) (iii) and (v), all rents, profits and sale proceeds of lands, buildings and other property vested or vesting in or acquired by the trust under the said Act and all fees and charges payable to or received by the trust under the said Act are credited to the said Fund, which is utilised for the achievement of the predominant object of improvem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d objects of the Mere selling some product at a profit will not ipso facto hit assessee by applying proviso to Section 2(15) and deny exemption available under Section 11. The intention of the trustees and the manner in which the activities of the charitable trust institution are undertaken are highly relevant to decide the issue of applicability of proviso to Section 2(15) . 26. Coming to the decision of Jammu Kashmir High Court in Jammu Development Authority's case (supra), relied upon by learned counsel for the Revenue, reveals that the appeal preferred by the Jammu Development Authority was dismissed by the court observing that there are findings of facts that the assessee-appellant has not been acting to advance any of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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