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TMI Blog2017 (6) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... ry body cannot be doubted. Considering the aforesaid facts and circumstances of the case, more particularly, considering the relevant provisions of the Gujarat Town Planning Act and the object and purpose for which AUDA has been constituted and the activities to be carried out by AUDA, which is in the nature of public utility services, the learned tribunal has rightly quashed and set aside the order passed by the Director of Income Tax (Exemption) cancelling the registration under Section 12AA of the Income Tax Act. - Decided in favour of assessee. - Tax Appeal No. 2323 of 2010 - - - Dated:- 25-4-2017 - M. R. Shah And B. N. Karia, JJ. Mr Manish Bhatt, Senior Advocate with Mrs Mauna M Bhatt, Advocate for the Appellant Mr SN Soparkar, Senior Advocate With Mrs Swati Soparkar, Advocate for the Opponent JUDGMENT ( Per : Honourable Mr. Justice M. R. Shah ) [1.0] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal, Ahmedabad (hereinafter referred to as the learned tribunal ) dated 21/05/2010 in ITA No.754/Ahd/2010 for the Assessment Year 2009-10 by which the learned tribunal has allowed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income Tax Act cancelling the registration under Section 12AA of the Income Tax Act retrospectively, the respondent assessee preferred Appeal before the learned tribunal and by the impugned judgment and order the learned tribunal has allowed the said Appeal and has set aside the order passed by the Director of Income Tax (Exemption) dated 15/02/2010. [2.2] Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned tribunal, revenue has preferred the present Tax Appeal to consider the aforestated question of law. [3.0] Shri Manish Bhatt, learned Senior Advocate has appeared on behalf of the revenue and Shri S.N. Soparkar, learned Senior Advocate has appeared on behalf of the respondent assessee. [3.1] It is vehemently submitted by Shri Manish Bhatt, learned Senior Advocate appearing on behalf of the revenue that in the facts and circumstances of the case, the learned tribunal has materially erred in quashing and setting aside the order passed by the Director of Income Tax (Exemption) under Section 12AA(3) of the Income Tax Act. It is submitted that as such cogent reasons were given by the Director of Income Tax (Exemption) whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Appeal. [4.0] The present Tax Appeal is vehemently opposed by Shri S.N. Soparkar, learned Senior Advocate appearing on behalf of the respondent assessee. It is vehemently submitted by Shri Soparkar, learned Senior Advocate appearing on behalf of the respondent assessee that in the facts and circumstances of the case and considering the purpose and object for which the respondent assessee has been established and constituted under the provisions of the Gujarat Town Planning Act, the services provided under the Act can be said to be public utility services, and therefore, it can be said to be charitable purpose within the meaning of Section 2(15) of the Income Tax Act, and therefore, the learned tribunal has rightly quashed and set aside the order passed by the Director of Income Tax (Exemption). [4.1] It is vehemently submitted by Shri Soparkar, learned Senior Advocate appearing on behalf of the revenue that merely because the respondent assessee is selling the plots by auction and recovering the cost of the project by imposing levy on the area developed by it, it cannot be said that the activities carried out by the respondent assessee is not in the nature of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of providing infrastructural facilities. Under the circumstances, merely because AUDA is selling the plots by holding public auction, the activities of the respondent assessee cannot be said to be in the nature of trade or business. By the aforesaid, it cannot be said that the activities of AUDA are not in consonance with the object and purpose for which the same has been constituted and as the respondent assessee is providing public utility services, the same can be said to be charitable purpose within the meaning of Section 2(15) of the Income Tax Act. It is also required to be noted that as such the accounts of the respondent assessee are subjected to statutory audit by the office of the Auditor General. From the order passed by the Director of Income Tax (Exemption), it appears that the Director of Income Tax (Exemption) cancelled the registration of the respondent assessee under Section 12AA of the Income Tax Act on the ground that the respondent assessee has not produced /maintained the books of accounts separately and /or individually plot wise. However, it is required to be noted that in the books of accounts maintained, which is audited by the office of the Audit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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