TaxTMI 
TaxTMI 
2017 (5) TMI 1607
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....ed the substantial question of law: Appeal No. 568/2009, admitted on 14th October, 2009 and Appeal No. 241/2011, admitted on 15th May, 2013 "Whether in the facts and circumstances of the case the ITAT has acted illegally and perversely in directing to grant registration u/s 12AA of the IT Act, irrespective of the fact that the work of the assessee cannot be termed as charitable within the meaning of section 2(15) of the IT Act as the work was being done on commercial lines?" 4. Now the issue is squarely covered by the decision of this Court in Commissioner of Income Tax Vs. Jodhpur Development Authority (2016) 287 CTR(Raj.) 473, wherein the Court observed as under: "27. In the backdrop of settled position of law disc....
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....ublic. Of course, while discharging the said functions, the JDA also discharges function to acquire, hold, manage and dispose of property movable or immovable as may be deemed necessary and also enters into contract, agreements or arrangements with any person or organization may deem necessary for performing its function and in this process, it might be earning income but the primary object of the JDA certainly does not involve any profit motive whatsoever. It is pertinent to note that as per the provisions of Section 51 of the JDA Act, for the purpose of discharging the statutory functions, "The Jodhpur Region Development Fund" is created to which all money received by the authority is credited including amount of contribution to be made b....
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....t, which are ancillary or incidental to the main object of general public utility, it does not cease to be charitable in character so as to render it ineligible to claim registration under Section 12A read with Section 12AA of the Act of 1961. As a matter of fact, it is not even the case of the Revenue that the object of general public utility sought to be achieved by constitution and establishment of the JDA as such, involve carrying on of any activity for profit and therefore, it is immaterial if some income is earned by ancillary and incidental activities, which as per the mandate of the relevant statute, is used for achieving or implementing such object. The genuineness of the activities of the JDA, which are regulated by the provisions....
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....the division of any land into plots for the erection of buildings for residential purposes; the provision of facilities for communication; the reclamation or reservation of the land for garden, afforestation and provision of fuel and grass supply and other needs of population; the planting and preservation of trees and plantation and any other matter for which in the opinion of the State Government it is expedient to make provisions with a view to improvement of the area comprised in scheme or the general efficiency thereof etc.. Undoubtedly, the aforesaid statutory functions which are being discharged by the UIT, are the activities undertaken for welfare of the public at large and certainly, fall within the expression of 'any other obj....
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....also cannot be faulted with." 5. Another decision of this Court in the case of CIT Vs. JDA, Jaipur, In D.B. Income Tax Appeal No. 46/2015, decided on 18th October, 2016, wherein in para 4 and 5, it has been held as under. "4. In our view, the view taken by Rajasthan High Court at Principal Seat Jodhpur more particularly in paragraph 25 and 26 where the view taken by the Lucknow Development Authority and Jammu & Kashmir both these are taken into consideration which reads as under:- "25. In Lucknow Development Authority's case (supra), while examining the question regarding applicability of proviso to Section 2(15), Allahabad High Court observed: "29. For the applicability of proviso to Section 2(15), the act....