9911796707
TMI Blog2019 (7) TMI 1608X X X X Extracts X X X X X X X X Extracts X X X X ..... andhinagar), has erred in law by stating that assesse trust is rendering its service in relation to any trade, commerce or Business. The same should be deleted. 2. Commissioner of Appeals (Gandhinagar), has erred in law by not considering the Income Tax Deaprtment circular that each trust collecting fees are not covered by the new provisons of section 2(15) of the Act. Assessee pray to delete the addition made on this count. 3. Commissioner of Appeals (Gandhinagar), has erred in law by not considering the assessee trust as local authority. The Assessee should get exemption on this count. 4. Assessing Officer has erred in charging Interest u/s 234A, 234B and 234C of the Act." 3. The fact in brief is that return of income declaring los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taking various fees like betterment charges, development charges which was in the nature of advancement of general public utility. The assessing officer has stated that assessee being urban development authority charges various types of fees from the public for providing certain amenities like roads, bridges etc. which was recovered from the beneficiaries who get benefit out of development of such common infrastructure. The assessing officer concluded that assessee's activities were out of the purview of provisions of section 2(15) of the act, therefore, its income was calculated as a normal business income and no deduction u/s. 11 and 12 were allowed to it. 4. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - "4. We have heard the respective parties, perused the relevant materials available on record. We find that in similar set of facts the Jurisdictional High Court passed the orders in the case of Urban Development Authority-vs-ACIT, where it was held as follows: "Held, that the object and purpose of permitting the Authority to sell the plots to a maximum extent of 15% of the total area, was to meet the expenditure for providing infrastructural facilities like gardens, roads, lighting, water supply, drainage system, etc. The reasons for selling the plots by holding public auction were; (a) to avoid any further allegation of favoritism and nepotism and (b) so that the maximum market price could be fetched, which could be used for the deve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment Act, 1962, for purpose of securing and assisting rapid and orderly establishment and organization of industrial areas and Industrial estates in State of Gujarat, and for purpose of establishing commercial centers in connection with establishment and organization of such industries it could not be said that activities carried out by assessee were either in nature of trade, commerce or business, for a Cess or Fee or any other consideration so as to attract proviso to section 2(15) and same could be said to be for charitable purpose and, consequently,. Assessee was entitled to exemption under section 11- Held, yes (Paras 15 and 17)[In favour of assessee]" 5. We find that the object of the assessee is similar to that of the corporation ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
