TMI Blog2021 (3) TMI 1223X X X X Extracts X X X X X X X X Extracts X X X X ..... account and the amount spends out of the same should have been debited to this account. It is an undisputable fact that the fund is not under the exclusive control of the assessee and the expenditure to be incurred out of the infrastructure funds are approved on the recommendation of high powered committee. Hon ble Allahabad High Court in the case of Lucknow Development Authority [ 2013 (9) TMI 570 - ALLAHABAD HIGH COURT] has held that the money transferred to the Infra structure fund account is to be utilized for the purpose of the projects as specified by the Committee having constituted by the State Government and cannot be treated as belonging to the authority or receipt is taxable nature in its hand. In the absence of any change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on facts in treating the infrastructure fund amount of ₹ 3,73,81,705/- (net) receipt for specific purpose, whereas it is revenue receipt subject to Income expenditure a/c and subject to tax . 3. The issue of treating the activity of the various city development authorities as charitable or not has been adjudicated by various Courts and Tribunals which consistently held that the activity of acquiring land, development of plots and construction of residential as well as commercial places is an activity considered as charitable in nature. 4. To quote a few judgments, CIT Vs Hridwar Development Authority [ITA No. 3056 3013/Del/2013 dated 25.07.2014 CIT Vs Muzaffarnagar Development Authority CIT Vs Khurja Development A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007-08 by the Co-ordinate Bench of ITAT G Bench, Delhi where in it was held that, the appellant has received infra structure funds under the orders of Govt. of U.P. and it was required to use such funds as per the direction of the High Powered Committee and has no control over the said funds. Therefore, the interest income from such funds is not the income of the appellant. 7. This observation has been given consistently by the ITAT in favour of the assessee for the Assessment years 2004-05 to 2007-08. Further, the Hon ble Allahabad High Court in the case of Lucknow Development Authority has held that the money transferred to the Infra structure fund account is to be utilized for the purpose of the projects as specified by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
