2017 (1) TMI 1513

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....that the assessee, an Authority formed under the Rules and Regulations of the UP Urban Planning and Development Act, 1973, was granted registration u/s 12AA of the Income-tax Act, 1961 (hereinafter also called 'the Act'). Return of income for the assessment year 2012-13 was filed declaring Nil income, after claiming exemption u/s 11 of the Act. The Assessing Officer, during the course of assessment proceedings, observed that the objects of the assessee were not charitable in nature and, hence, exemption u/s 11 was not available. On being called upon to explain as to why the exemption be not denied as the assessee was engaged in the real estate business and the provisions of the first proviso to section 2(15) were applicable, the assessee su....

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....ncellation of registration u/s 12AA(3) was approved. The ld. CIT(A) took note of the orders passed by the Tribunal in the assessee's own case for the assessment years 2008-09 and 2009-10 setting aside the orders of the Assessing Officer and restoring the exemption u/s 11 of the Act. However, in his opinion, the dismissal of SLP against the judgment of the Hon'ble J&K High Court changed the entire conspectus of the case and he, ex consequenti, held that the earlier Tribunal orders in the assessee's own case could not be followed. The assessee is aggrieved against the denial of exemption u/s 11 of the Act. 3. We have heard both the sides and gone through the relevant material on record. It is seen, as is evident from para 4.1 of the im....

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....dbare and, thereafter, decided similar issue against the Revenue. 4. It is, ergo, palpable that the assessee has been allowed exemption u/s 11 of the Act consistently in the past, either by the AO himself or by virtue of the orders of the Tribunal as affirmed by the Hon'ble High Court. This settled position ought not to have been ordinarily disturbed. The authorities below have chosen to deviate from the earlier consistent view by harping on the dismissal of SLP against the judgment of the Hon'ble J&K High Court in Jammu Development Authority. There are two reasons for not accepting the Departmental stand. Firstly, the issue before the Hon'ble Jammu and Kashmir High Court was cancellation of registration by the CIT u/s 12AA(3) of the....