9911796707
TMI Blog2019 (7) TMI 1608X X X X Extracts X X X X X X X X Extracts X X X X ..... under the provisions of the Act, to carry out the object and purpose of Town Planning Act and collected regulatory fees for the object of the Acts, no services were rendered to any particular trade, commerce or business; and whatever income was earned by the assessee even while selling the plots (to the extent of 15% of the total area covered under the Town Planning Scheme) was required to be used only for the purpose 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this count. 4. Assessing Officer has erred in charging Interest u/s 234A, 234B and 234C of the Act. 3. The fact in brief is that return of income declaring loss of ₹ 24,320 was filed on 30th Sep, 2011. The case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 10th Sep, 2012. During the course of assessment proceedings, the assessing officer observed that the main objective of the assessee was planned and controlled development for the entire urban development area which was of the nature of advancement of object of public utility. Therefore, assessee was show caused to explain why not the exemption claimed u/s. 11 of the IT Act should be denied and why not the proviso to section 2(15) of the act shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lculated as a normal business income and no deduction u/s. 11 and 12 were allowed to it. 4. Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee. 5. During the course of appellate proceedings before us, the ld. counsel has contended that Co-ordinate Bench of the ITAT Ahmedabad has adjudicated the identical issue on similar fact in the case of the Vodadara Urban Development Authority Vs. ITO Vide ITA No. 2751/Ahd/2014 dated 28-01-2019 in favour of the assessee, after following the decision of Hon ble Jurisdictional High Court of Gujarat on identical issue and fact in the case of Ahmedabad Urban Development Authority vs. ACIT 396 ITR 323 (Gujarat) and CIT Vs. Gujarat Industri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing public auction were; (a) to avoid any further allegation of favoritism and nepotism and (b) so that the maximum market price could be fetched, which could be used for the development of the urban development area. Considering the fact that the assessee was a statutory body, an Authority constituted under the provisions of the Act, to carry out the object and purpose of Town Planning Act and collected regulatory fees for the object of the Acts, no services were rendered to any particular trade, commerce or business; and whatever income was earned by the assessee even while selling the plots (to the extent of 15% of the total area covered under the Town Planning Scheme) was required to be used only for the purpose to carry out the object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was entitled to exemption under section 11- Held, yes (Paras 15 and 17)[In favour of assessee] 5. We find that the object of the assessee is similar to that of the corporation before the Jurisdictional High Court and on the similar set of facts the appeal was allowed in favour of the assessee hence relying upon the same we allow the claim of the assessee and the disallowance of exemption as claimed by the assessee u/s 11 of the Act to the tune of ₹ 70,73,005/- is hereby quashed and addition made thereon is thus deleted. Respectfully following the decision of Co-ordinate Bench as above on similar issue and identical facts, the claim of the assessee is allowed. Accordingly, the appeal of the assessee is allowed. 7. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
