2019 (12) TMI 582 - HC - Income Tax

Benefit of exemptions u/s. 11 - Charitable activity u/s 2(15) - Tribunal has merely applied the decision of this court in the case of Ahmedabad Urban Development Authority v. Assistant Commissioner of Income Tax (Exemptions) 2017 (5) TMI 1468 - GUJARAT HIGH COURT to the facts of the present case - HELD THAT - It is not the case of the appellant that the Tribunal has wrongly applied the decision to the facts of the present case. The sole ground put forth is that the Special Leave Petition filed by the revenue against the said decision is pending before the Supreme Court. In the aforesaid premises, it is not necessary to set out the facts and contentions in detail. For the reasons recorded in the decision of this court in the case of Ahmedabad Urban Development Authority v. Assistant Commissioner of Income Tax (Exemptions) (supra), this court does not find any infirmity in the impugned order passed by the Tribunal so as to give rise to any question of law, much less, a substantial question of law, warranting interference.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal regarding exemptions under Income Tax Act, 1961.

Analysis:
1. The appellant challenged the Tribunal's order on substantial questions of law related to the nature of the assessee's activities under sections 11 & 12 of the Act, and the exemptions granted under sections 11(1)(a) and 11(2) of the Act. The Tribunal allowed exemptions totaling to significant amounts without considering the provisions of section 2(15) rws 13(8) of the Act.

2. The assessment year in question was 2012-13, with the corresponding accounting period being the previous year, 2011-12. The appellant, represented by Mrs. Mauna Bhatt, Senior Standing Counsel, reiterated the grounds of appeal during the hearing.

3. The Tribunal based its decision on the precedent set by the High Court in the case of Ahmedabad Urban Development Authority v. Assistant Commissioner of Income Tax (Exemptions), (2017) 396 ITR 323 (Guj.). The appellant did not argue that the Tribunal misapplied this decision but pointed out that a Special Leave Petition on the matter was pending before the Supreme Court.

4. The High Court, referring to its previous decision in the Ahmedabad Urban Development Authority case, found no error in the Tribunal's order. The court stated that there was no infirmity in the Tribunal's decision that would warrant interference on the grounds of law. Consequently, the appeal was dismissed summarily.

This detailed analysis covers the issues raised in the appeal challenging the Tribunal's order regarding exemptions under the Income Tax Act, providing a comprehensive understanding of the judgment delivered by the High Court.