2019 (2) TMI 543

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.... of the Appellant of Rs,70,73,005/- claimed as exempt u/s.11(1) of the I.T. Act. 2. It is also submitted by your Appellant that the CIT(A) has erred in holding that the Amended Sec.2(15) to the term "charitable purposes" inserted to the Act by Finance Act, 2012 is retrospective from 1-4-2009 and therefore your Appellant is not entitled to the exemption thereunder. 3. It is further submitted by your Appellant that the CIT(A) has erred in holding that Sec.2(15) of the Act applies and therefore in view of Sec. 13(8) your Appellant is no entitled to Exemption u/s.11 & 12 of the Act. It is therefore submitted that relief claimed above be allowed and the order of the Assessing Officer be modified accordingly. Your Appellant reserves rig....

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....nd 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 acceed to the claim as prayed for and the income of Rs. 70,73,005/- was added in the hands of the assessee rejecting the claim of exemption by the assessee u/s 11 of the Act which was rejected under Section 13(8) of the Act. 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 within the purview of the charitabl....

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....al High Court passed the orders in the case of Urban Development Authority-vs-ACIT, where it was held as follows: "Held, that the object and purpose of permitting the Authority to sell the plots to a maximum extent of 15% of the total area, was to meet the expenditure for providing infrastructural facilities like gardens, roads, lighting, water supply, drainage system, etc. The reasons for selling the plots by holding public auction were; (a) to avoid any further allegation of favoritism and nepotism and (b) so that the maximum market price could be fetched, which could be used for the development of the urban development area. Considering the fact that the assessee was a statutory body, an Authority constituted under the provisions of th....