2018 (3) TMI 467

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.... The assessee is a Trust registered u/s 12A of the Income-tax Act, 1961. It is an authority constituted by the Government of Kerala for planning and development of Greater Cochin area. For the A.Ys 2011-2012 and 2012-2013, the return of income was filed after claiming exemption u/s 11 of the I.T.Act. The assessments were completed wherein the assessee was denied the exemption claimed u/s 11 of the I.T.Act. The Assessing Officer invoked proviso to section 2(15) of the Income-tax Act and held assessee's activities are not charitable in nature. 3. Aggrieved by the denial of exemption u/s 11 of the I.T.Act, the assessee preferred appeals before the first appellate authority. The CIT(A) following the judgment of the Hon'ble Kerala High Court ....

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....voor Muncipality 3. Alwaye Muncipality 4. North Parur Muncipality 5. Kuzhippilly, Pallippuram, Edavanakkad, Nayarambalam, Njarakkal, Elamkunnappuzha, Chellanam, Kumbalangi, Mulamthuruthy, Thiruvankulam, Trippunithura, Cheranelloor, Kadamakudy, Kalamassery, Thrikkakkara, Kumabalam, Maradu, Udayamperur, Vadavukodeputhencuriz, Vazhakkulam, Choornikkara, Edathala, keezmadu, Changamanad, Sreemoolanagaram, Alangad, Kadungalloor, Eloor, Ezhikara, Kottuvally, Nedumbassery, Angamaly and Kanjoor Panchayaths. 4. The said Town Planning Act split out in I to X chapters. Chapter II, comprising Sec.3 & 4 explains the Town-Planning Schemes and infrastructure development, which is the main object and activities of the app....

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....e Account Rs.16,20,03,076.67 Part II Capital Account Rs.8,01,98,427.00 Part III Debit, Deposit & Suspense A/c Rs. 5,93,83,004.50   Total Receipts ( I+II+III ) Rs.30,15,84,508.17 Expenditure Part I Revenue Account Rs. 8,65,29,731.99   Part II Capital Account Rs. 20,67,57,951.00   Part II Debit Head Rs.3,73,83,997.00   Total Expenditure ( I+II+III ) Rs.33,06,71,679.99 The appellant has excess of Expenditure over Income Rs. 2,90,87,171.82, against which NIL income was filed, after claiming exemption u/s 11. The A.O has denied expenditure of Rs. 8,00,00,000 which was not justified in the assessment order, the same was also upheld in appeal. ....

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.... that, the assessment for year 2011-12 and subsequent dismissal of appeal by the CIT (A) was not just and proper, based on the broad object and developmental activities of the appellant, which akin to the activities of Government in public work, and liable to be squashed. The appellant is rightful for allowing the exemption u/s 11. Hence the tax liability of Rs. 2,20,70,150.00 to be nullified. 13. Further, the refund of prepaid taxes (TOS) allowed u/s 143(1) was Rs. 60,52,680.00, the assessment u/s 147 was further reduced the prepaid taxes to Rs. 55,02,439.00, thereby prepaid taxes are reduced by Rs. 5,50,241.00, for which no justification was given the order. We plea before the Tribunal to allow the prepaid taxes rejected, with in....