2019 (2) TMI 364

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....dabad arising out of the different orders for the Assessment Years 2012-13, 2013- 14, 2009-10, 2011-12 & 2014-15 respectively under section 143(3) of the Income Tax Act, 1961 (hereinafter referred as "The Act"). Since the issues involved in these cases are identical the same are heard analogously and are being disposed of by a common order. ITA No.1692/Ahd/2017 is taken as the lead case. 2. The order passed by the Learned AO in determining the total income to the tune of Rs. 2,38,37,730/- after disallowing the claim u/s 11(1) and 11(1)(a) of the Act for A.Y. 2012-13. 3. The brief facts leading to this case is this that the assessee, an authority notified by the Government of Gujarat under Gujarat Town Planning and Urban Development....

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....ity of the institutions and hence eligible u/s 11(1) of the Act for claiming exemption. However, such plea of the assessee was not accepted by the Learned AO. The Learned AO did not accede to the claim as prayed for and the income of Rs. 2,38,37,730/- was added in the hands of the assessee rejecting the claim of exemption u/s 11 of the Act by the assessee which was rejected under Section 13(8) of the Act. 4. In appeal, the assessee alleged before the Learned CIT(A) that the Learned AO wrongly disallowed the claim and stepped into the shoes of the powers of the Learned CIT who has granted registration u/s 12AA even he has found any activity of the institutions to be contrary to the objects of the trust or not in the nature of following wi....

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.... created out of its funds and not from the grants. As the AO has rightly invoked proviso to section 2(15) of the Act r.w.s. 13(8) of the Act the appellant will not be eligible to claim any benefit of section 11 & 12 of the Act. Thus the first ground of appeal stands dismissed." 6. At the time of hearing of the instant appeal, the Learned Counsel appearing for the assessee submitted before us that the case is covered by the judgments of Jurisdictional High Court passed in the matter of Ahmedabad Urban Development Authority-vs- ACIT 396 ITR 323 (Guj.) and CIT-vs-Gujarat Industrial Development Corporation [2017] 89 Taxmann.com 366 (Guj.) where the claim of the assessee has been allowed in its proper prospective. He further relied upon the o....

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....see even while selling the plots (to the extent of 15% of the total area covered under the Town Planning Scheme) was required to be used only for the purpose to carry out the object and purpose of the Town Planning Act and to meet the expenditure of providing general utility service to the public such as electricity, road, drainage, water etc. and the entire control was with the State government and accounts were also subjected to audit and there was no element of profiteering at all. The activities of the assessee could not be said to be in the nature of trade, 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 exempti....