2018 (11) TMI 584

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.... 2. The assessee is an authority constituted by the way of Notification No.181 TTP 88 dated 15.04.1988 under The Karnataka Urban Development Authority Act, 1987. The assessee filed an application for Registration under section 12A (a) of the Act vide application dated 05.12.2016 in Form 10A by enclosing the document of Certified copy of the Instrument under which the authority was created i.e., Notification No.HUD 181 TTP 88, dated 15.04.1988. The assessee also submitted the objects of the Authority and activities of the Authority. The object of the Authority is prescribed under section 14 of the Karnataka Urban Development Authorities Act, 1987. The same is as follows:- "Objects of the Authority: The objects of the authority sha....

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....evelopment of the city and its funds are to be utilized for the purpose of the development/charitable purpose. As development is also included in the definition of "Charitable activity" under the Act. The appellant has applied for grant of registration under section 12A of the Act." Further the assessee filed various details called for by the CIT (Exemptions). 4. The CIT(Exemptions) further issued a letter dated 06.06.2017 requiring the assessee to furnish further details. The assessee in response to the above letter filed a detailed reply vide letter dated 14.06.2017 categorically stating that "The Urban Development Authority is incorporated under 'The Karnataka Urban Development Authorities Act, 1987' the Karnataka Act No.34 of ....

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....tion clause, e) Irrevocability clause, f) Beneficiary clause & g) Utilisation clause incorporate the same by way of amendment to the trust deed. Hence, in the absence of the amended deed for the above clauses, the genuineness of the activities cannot be verifiable. In the instant case, it is not possible to verify the genuineness of the trust or its activities. 2. At the stage of registration u/s 12AA, the Commissioner in receipt of an application for registration has to be satisfy himself about the objects of the trust or institution and the genuineness of the trust and its activities. In this connection, the reliance is placed on the decision of the Honorable High Court of Kerala in the case of Self Employers Service Society Vs. ....

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....(E) in the case of Self Employers Service Society Vs. CIT (2001) 247 ITR 18 (Ker) is not applicable to the facts of the case of the assessee. Further reliance was placed on the following decisions wherein on the similar type of activity of the assessee were held to be charitable in nature. (a) Jaipur Development Authority Vs. CIT (2014) 52 taxmann.com 25 (Jaipur-Trib). (b) Haridwar Development Authority Vs. CIT (2015) 57 taxmann.com 6 (Delhi-Trib). (c) CIT Vs. Lucknow Development Authority (2013) 38 taxmann.com 246 (Allahabad). 9. The ld. DR relied on the order of the CIT(Exemptions). 10. We have considered the rival submissions. It is clear that the reply dated 06.06.2017 filed by the assessee before the CI....