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TMI Blog2019 (2) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... rpose to carry out the object and purpose of the Town Planning Act and to meet the expenditure of providing general utility service to the public such as electricity, road, drainage, water etc. and the entire control was with the State government and accounts were also subjected to audit and there was no element of profiteering at all. The activities of the assessee could not be said to be in the nature of trade, commerce and business and therefore, the proviso to Section 2(15) of the Act was not applicable so far as the assessee was concerned. Therefore, the assessee was entitled to exemption under section 11 - decided in favour of assessee - I.T.A. Nos.1692 & 1693/Ahd/2017, I.T.A. Nos. 2435, 2436 And 2437/Ahd/2017 - - - Dated:- 5-2-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2015; total income was determined at ₹ 2,38,37,730/- denying the exemption u/s 11 and Section 11(1)(a) of the Act. Till the Financial Year 2002-03, the income of authorities like Urban Development Authority was exempted u/s 10(20A) of the Act in view of the omission of Section 10(20A) of the Act and the addition of Section 10(20) w.e.f 01.04.2003 the benefit confirmed by Section 10(20)(A) of the Act on the assessee upto the A.Y. 2002-03 has been expressly taken away and the explanation added to Section 10(20) enumerates the Local Authority which does not cover the VUDA. Subsequently, the assessee claimed that its objects falls under the provisions of Section 2(15) of the Act and has complied with all the eligibility criteria for gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 12 of the Act was therefore ultimately rejected by the Learned CIT(A) with the following observation: 27. Accordingly, I hereby confirm the position taken by AO that VUDA is covered by first and second proviso to section 2(15) of the Act thereby the provisions of section 13(8) of the Act shall be applicable to the appellant. I agree with the AO and confirm that he has rightly applied section 13(8) of the Act to VUDA. The AO is directed to recompute the income of the appellant based on observations made above. While recomputing the income the AO would taken into account the receipts by VUDA reflected under various schedules of the balance sheet received during the year under consideration. These are the receipts of VUDA received as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order passed by the Co-ordinate Bench in ITA No.2751/Ahd/2014 for Asst. Year 2010-11, relevant portion whereof is as follows: We find that in similar set of facts the Jurisdictional High Court passed the orders in the case of Urban Development Authority-vs-ACIT , where it was held as follows: Held, that the object and purpose of permitting the Authority to sell the plots to a maximum extent of 15% of the total area, was to meet the expenditure for providing infrastructural facilities like gardens, roads, lighting, water supply, drainage system, etc. The reasons for selling the plots by holding public auction were; (a) to avoid any further allegation of favoritism and nepotism and (b) so that the maximum market price could b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oration was constituted under Gujarat Industrial Development Act, 1962, for purpose of securing and assisting rapid and orderly establishment and organization of industrial areas and Industrial estates in State of Gujarat, and for purpose of establishing commercial centers in connection with establishment and organization of such industries it could not be said that activities carried out by assessee were either in nature of trade, commerce or business, for a Cess or Fee or any other consideration so as to attract proviso to section 2(15) and same could be said to be for charitable purpose and, consequently,. Assessee was entitled to exemption under section 11- Held, yes (Paras 15 and 17)[In favour of assessee] 8. We find that the iss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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