2012 (6) TMI 829

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..... st the order of the ld. Commissioner of Income-tax refusing registration under section 12AA of the Income-tax Act, 1961 (hereinafter called in short the Act ). 2. Briefly stated the facts of the case are that the assessee i.e. U.P. State Highways Authority, constituted in accordance with the provisions of section 3 of the U.P. Act No.19 of 2004, has filed an application in form No.10A seeking .....

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..... is planning to take up the construction of State highways and railway over bridges on Public-Private-Partnership basis (PPP Model) and the rate at which fees is to be levied and toll to be collected has been laid down in the Uttar Pradesh State Highways Rules, 2009, which is also subject to revision from time to time. The objects which may be perceived as charitable are nowhere spelt out in the U .....

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..... otified and according to this Notification, the fees collected as per provisions of section 2B of Indian Tolls Act, 1851 are to be remitted to the State Government. Therefore, the assessee would not have any right over the fees collected under the Indian Tolls Act. Since the assessee is a non-profit making body, it cannot be called that its activities are of commercial in nature. The photocopy of .....

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..... ified by Notification dated 12.1.2011. 4. The ld. D.R., on the other hand, has submitted that the ld. Commissioner of Income-tax has adjudicated the issue on the basis of the relevant Rules available before him. The so called Rules, on which the assessee has placed heavy reliance, were not available with the ld. Commissioner of Income-tax, therefore, refusal of registration cannot be considered .....

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..... the Act. We are, therefore, of the view that the issue of registration under section 12A of the Act should be re-adjudicated by the ld. Commissioner of Income-tax in the light of U.P. State Highways The Determination of Rates and Collection of Tolls Rules, 2011 . We accordingly set aside the order of the ld. Commissioner of Income-tax and restore the matter to his file with a direction to re-adju .....

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