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2024 (6) TMI 1232 - HC - Income TaxIssues: - Exemption from realisation of process fee and development charges under Niyamavali, 2014 - Entitlement to concession under Section 53 of the Act, 1973 - Refusal of exemption by respondent no.3 based on lack of approval under Section 12A and 80G of the Act, 1961 Exemption from realisation of process fee and development charges under Niyamavali, 2014: The petitioner, a Charitable Society, sought exemption from demand notices issued by respondent no.3 under Niyamavali, 2014. The Society maintained various charitable facilities and had applied for construction approvals from the Saharanpur Development Authority (SDA). The Society claimed entitlement to exemption based on its charitable status and the benefits received under Section 12A and 80G of the Income Tax Act, 1961. The High Court noted the Society's compliance with the provisions and the exemptions granted by the Income Tax Department, ultimately setting aside the demand notices and directing a fresh decision by the SDA, considering the Niyamavali, 2014, and the Income Tax exemptions. Entitlement to concession under Section 53 of the Act, 1973: The petitioner Society had applied for map sanction for construction projects, which were approved by the SDA. Subsequently, the Society claimed concessions for process fee and development charges under Section 53 of the Act, 1973. The Society also obtained exemptions under Section 12A and 80G of the Income Tax Act, 1961. Despite initial deposits made under protest, the respondent no.3 issued demand notices, citing lack of exemption approval at the time of map sanction. The High Court analyzed the Society's compliance with the relevant provisions and granted relief, emphasizing the entitlement to concessions under the Act, 1973, and the Income Tax exemptions. Refusal of exemption by respondent no.3 based on lack of approval under Section 12A and 80G of the Act, 1961: The respondent no.3 refused to grant exemption to the petitioner Society, asserting that no exemption was accorded by the Income Tax Department at the time of map sanction. The respondent no.3 issued demand notices, challenging the Society's claim for exemptions under Section 12A and 80G of the Income Tax Act, 1961. However, the High Court found that the Society's applications for Income Tax exemptions were pending at the time of map sanction, and subsequently approved, making the Society eligible for concessions under the Act, 1973. The Court set aside the impugned orders and directed a fresh decision by the SDA, considering the Society's entitlement to exemptions under the relevant laws. This detailed analysis of the judgment showcases the issues involved, the arguments presented by the parties, and the High Court's decision based on the legal provisions and factual circumstances of the case.
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