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TMI Blog2025 (1) TMI 877X X X X Extracts X X X X X X X X Extracts X X X X ..... Sec.200A of IT Act in Annexure 'A' sent by R-2. 28. No harm or prejudice is caused on grant of Interim Stay. The balance of convenience is clearly in favour of the Petitioner and it is a fit case for grant of interim stay by this Honourable Court. On the contrary if Interim Stay is refused then it will lead to hardship." 2. The fact situation in a nutshell leading to the present writ petition is that the petitioner had applied to the 3rd respondent/Bengaluru Development Authority Hereinafter referred to as the 'BDA' for allotment of a site by making an initial deposit of Rs.12,11,000/-, pursuant to which, vide allotment letter dated 07.12.2016 (Annexure-B to the writ petition), the petitioner was allotted a site in the Nadaprabhu Kempegowda Layout of the BDA for a total sale consideration of Rs.96,87,510/-. After deducting the initial deposit of Rs.12,11,000/-, the balance sale consideration that the petitioner was required to pay the BDA was Rs.84,76,510/- within 60 days of receipt of the allotment letter. 3. It is the case of the petitioner that he enquired with the office of the BDA as to whether it enjoyed any income tax exemption under Section 12A of the Income Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon the petitioner to show cause as to why his allotment should not be cancelled in view of nonpayment of balance sital value. In response, the petitioner got issued reply dated 31.08.2018, informing the BDA that he had paid the entire sital value on 09.06.2017 itself. It is the further contention of the BDA that it has issued an endorsement dated 07.09.2018, calling upon the petitioner to submit all the original documents along with Form-16B and Form-26QB, in compliance of which, the petitioner has submitted all the requisite documents to the BDA and is requesting for execution of lease cum sale agreement in his favour. 7. It is the further contention of the BDA that, at no point of time it had instructed the petitioner not to deduct TDS while making payment of the balance sital value. It is further placed on record by the BDA that it is not registered under Section 12A of the IT Act. That deducting TDS is mandatory and that the 3rd respondent/BDA cannot be held responsible for the action initiated by the Income Tax department against the petitioner. It is the contention of the 3rd respondent/BDA that the petitioner has paid a sum of Rs.79,528/- in excess of the amounts payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, in accordance with Section 200(3) of the IT Act deliver a quarterly statement in terms of the stipulation contained therein. 13. Section 12A of the IT Act sets out that Section 12 of the IT Act pertaining to TDS shall not apply to a Trust or institution and the conditions for the applicability of Section 12A of IT Act are enumerated in the said Section. Section 12AA(3) of the IT Act also stipulates that the exemption could be withdrawn under certain circumstances which are enumerated therein. Section 2(15) IT Act defines "charitable purpose" and proviso stipulates that if the activity involves trade, commerce or business, it shall not be considered as charitable purpose unless such activity is undertaken in the course of actual carrying out of advancement of any other object of general public utility or the aggregate receipts of the previous year do not exceed 20% total receipts of the previous year. Section 10(46 and 46-A) of the IT Act stipulates that a Board or Trust or Commission constituted by the Central or State Government with the object of regulating or administrating any activity for the general public is also exempted. 14. It is relevant to notice that the total sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is further contended that, at the earliest instance when the petitioner learnt regarding the payment of TDS amount, the same having been paid, the petitioner seeks indulgence of this Court in granting reliefs sought for in the present writ petition for the purpose of quashing the intimation dated 03.10.2018 demanding late fee and interest i.e., claimed by the respondent No.2-Tax Authorities. 18. At this stage, it is relevant to note that although it is vehement contention of the petitioner that respondent No.3-BDA is an exempted institution as per Section 12A of the IT Act, respondent No.3-BDA in its statement of objections has, at paragraph 7, made categorical averment that BDA is not registered under 12A of the IT Act and that deducting TDS is mandatory. 19. The petitioner has vehemently contended that the information available in the website of the Income Tax Department denotes BDA as an exempted institution. The printout of the said website has also been placed on record along with the memo dated 26.11.2024. However, it is also relevant to note that there are litigations pending before the Division Bench of this Court with regard to the exemption of the BDA and other such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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