9911796707
TMI Blog2021 (9) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... rdinate Bench of the ITAT has adjudicated the similar issue on identical fact in the case of the assessee itself [ 2019 (7) TMI 1608 - ITAT AHMEDABAD] wherein the claim of the assessee has been allowed - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... side and that of the Assessing Officer be restored." 3. The fact in brief is that return of income declaring its income at Rs. nil was filed on 22nd Sep, 2015. The case was selected under scrutiny by issuing of notice u/s. 143(2) of the act on 26.09.2016. The assessee was incorporated to undertake the preparation of development plans, monitoring and control of development of town planning and carried out work in connection with supply for water and disposal of sewage and provisions for other services and activities for the benefit of public at large. The assessee has been granted registration u/s. 12AAA. During the course of assessment, the assessing officer observed that that the main objective of the assessee is contribution towards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fees from the public for providing certain amenities like roads, bridges etc. which was recovered from the beneficiaries who get benefit out of development of such common infrastructure. The assessing officer concluded that proviso to section 2(15) of the act becomes applicable to the facts of the case of the assessee, therefore, its income was calculated 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 allowed 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the decision of Hon'ble Gujarat High Court in the cases of Ahmedabad Urban Development Authority vs. ACIT 396 ITR 323 (Gujarat) and CIT Vs. Gujarat Industrial Development Corporation (2017) Taxman.com 366 (Guj) the Co-ordinate Bench of the ITAT has adjudicated the similar issue on identical fact in the case of the Vadodara Urban Development Authority Vs. ITO Vide ITA No. 2751/Ahd/2014 dated 28-01-2019 wherein the claim of the assessee has been allowed. Relevant part of decision of Co-ordinate Bench is reproduced as under:- "4. We have heard the respective parties, perused the relevant materials available on record. We find that in similar set of facts the Jurisdictional High Court passed the orders in the case of Urban Developm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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." Apart from that CIT vs. Gujarat Industrial Development Corporation, wherein it was held as follows: "Section 2(15), read with section 11, of the Income-tax Act, 1961 Charitable purpose (Objects of general public utility) Assessment year 2009-10 Whether where assessee corporation 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 comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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