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TMI Blog2020 (2) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... ining to Assessment Years 2008-09 to 2011-12 are covered by the Circular No.17/2019 dated 08-08-2019 issued by CBDT prescribing monetary limit of Rs. 50.00 lakhs for the revenue for preferring appeals challenging the order passed by Ld CIT(A), since the tax effect involved in these appeals are less than 50 lakhs. The learned DR, in principle, accepted the submissions made by the learned AR. However, he pleaded that the Revenue should be given liberty to move appropriate application for recall of the orders, if it is found later that the issues contested in these appeals are covered by exceptions provided in the circular issued from time to time. 3. We heard the parties and perused the record. Since the tax effect involved in the appeals p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to applicability of proviso to sec.2(15) was examined by Bangalore Bench of Tribunal in the case of Karnataka Industrial Area Development Board (KIADB) Vs. Addl. DIT (ITA No.378/Bang/2013 dated 04.09.2015), wherein the Tribunal has held that the activity of the KIADB in acquiring sites and developing industrial area and selling sites / factory sets to various persons will not be hit by the first proviso to section 2(15) of the Act. Accordingly, following the above said decision, the learned CIT(A) allowed the appeal of the assessee on this issue. With regard to the issue relating to set off of brought forward deficit, the learned CIT(A) followed the decision rendered by Co-ordinate Bench in the case of Seva Sadan Orphanage and Training ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formed under Karnataka Urban Development Authorities Act 1987. The Statement of Objects and Reasons of the above Act states as under: With a view to speeding up planning and development of land in urban areas in the State, it is felt desirable to have for each urban area a single agency for performing functions both as a Planning Authority and as Development Authority. The preamble of the Act states as under: An Act to provide for the establishment of Urban Development Authorities for the planned development of major and important urban areas in the State and the areas adjacent thereto and for matters connected therewith. Whereas it is expedient to provide for the establishment of Urban Development Authorities for the planned develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendations of the Local Authority, if the local authority places at the disposal of the authority, the necessary funds for framing and carrying out any scheme; or iii) otherwise (3) Notwithstanding anything in this Act or in any other law for the time being in force, the Government may, whenever it deems it necessary, require the authority to take up any development scheme or work, and execute it subject to such terms and conditions as may be specified by the Government. A perusal of the above would show that the primary purpose of the appellant is to ensure orderly growth of urban areas in Chitradurga district through proper planning. For this purpose the appellant acquires sites, forms the layout and sells them to various persons. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the one of the important objects of the appellant is to acquire sites, construct house and sell them to general public and economically weaker sections and other deserving sections of the public. Sites are allotted ai nominal rates and the prices charged are not commercial prices. Therefore, it is clear that the activities of acquiring and selling sites are not carried out with commercial/profit motive. It is submitted that once the dominant object of an institution is charitable in nature, the first proviso will not apply just because certain activities which have the characteristics of a business are carried on. 2.5 We rely on the decision of the Hon'ble Income Tax Appellate Tribunal, Bangalore Bench in Karnataka Industrial Area De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Assessee is directed to be accepted. 8. Accordingly, the learned AR submitted that the issue is fully covered by the decision of the Co-ordinate Bench in the case of Bangalore Development Authority. With regard to the second issue, the Ld A.R submitted that the same is covered by the decisions rendered by Hon'ble Bombay and Gujarat High Courts. 9. The learned DR, on the contrary, supported the order passed by the assessee. 10. We have heard the rival submissions. We notice that the learned CIT(A) has followed the decisions rendered by the Co-ordinate Benches in deciding the first issue, i.e., the issue relating to applicability of proviso to sec.2(15) of the Act and accordingly held that the said proviso will not apply to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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