TaxTMI 
TaxTMI 
TaxTMI 
2017 (7) TMI 1367
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....manner as Development Authorities do? (iv) Whether the CIT(A) has erred in law in not acknowledging that performing statutory functions does not absolve a government created authority from paying taxes? (v) Whether the CIT(A) has erred in law in totally ignoring the ratio laid in the case of Jammu Development Authority even when the department had placed heavy reliance on the same during the course of hearings? (vi) The appellant craves leave to add or amend the grounds of appeal on or before is heard and disposed off. 2. Ground No. 4 is theoretical in nature and has not dealt with. 3. Ground No. 6 is general in nature hence needs no adjudication. 4. Ground No. 1, 2, 3 & 5 are dealt together. 5. Brief facts of the case are that the appellant is an artificial juridical person having income from planning & development of cities and the same was shown 3S income from other sources. The appellant has Peen granted registration u/s 12AA of the I.T. Act by the Commissioner of Income Tax, Patiala vide order F. No. CIT/PTA/Tech/12AA/2005-06 dated 30/03/2006. During the course of assessment proceeding, Assessing Officer observed that the appellant was carrying on business of sale & ....
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....essee for A.Ys.2009-10 and 2010-11 wherein the Hon'ble ITAT has decided the issue in favour of the assessee relying on the order of Hon'ble ITAT Amritsar in the case of Hoshairpur Improvement Trust vs ITO (ITA NO.496/ASR/2013). He further contended that the Hon'ble ITAT Chandigarh while relying on the decision of Hon'ble ITAT Amritsar in the case of Hoshiarpur Improvement Trust (supra) did not follow its own decision in the cases of Housing Board Haryana vs CIT (ITA No 1200/Chd/2004) dated 30.05.2014 and Khanna Improvement Trust vs CIT (ITA No. 406/Chd/2013) dated 26.11 2014 In these cases the Hon'ble ITAT has decided the issue in favour of the Revenue holding that Housing Board Haryana and Khanna Improvement Trust are not covered by the definition of charitable organization as provided u/s 2(15) w.e.f. 01 04.2009. While deciding the issue in favour of the Revenue, the Hon'ble ITAT has relied on the decision of Hon'ble ITAT Amritsar in the case of Jammu Development Authority(JDA) which has subsequently been upheld by Hon'ble J&K High Court and by Hon'ble Supreme decisions, as discussed supra, the Hon'ble ITAT has relied on the decision of J&K High Court ....
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....rnment of Punjab formed the trusts under the Punjab Town Improvement Act, 1922 because it wanted to carry on the business as colonizers or developers under the mask of the category "objects of general public utility". 75. Section 28(2)(iii) of the Punjab Town Improvement Act, 1922 permits a scheme under this Act to provide inter- alia for the disposal of the land vested in or acquired by the trust including by lease, sale and exchange thereof. This, however, is not the predominant activity or responsibility of the trust. Nor for this assessee is making profits from this activity its predominant motive. 76. The power of the assessee to dispose of land conferred by Section 28(2)(iii) is not an absolute or independent power. It is conferred upon the assessee in the discharge of its statutory duties imposed on it by the PTI Act of framing schemes. Sub section (1) of Section 28 entitles the assessee to combine the various schemes referred to in Chapter-IV. Sub section (2) stipulates that the scheme 67 of 74 ITA-62-2015 and ITA 147-2016 - 68 - under the Act may provide for a variety of things including the disposal of land belonging to the assessee. This power is, therefore, in furth....
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....of development of any locality and an expansion scheme is also prepared when it is expedient and for the public advantage as opposed to a mere personal advantage as in the case of private developers or the colonizers. The two cannot possibly be compared. These schemes do not contemplate mere development of the plots and the construction of the premises for sale. The Trust must under the Act adopt a holistic approach for the betterment and advantage of the entire area within its jurisdiction. 80. Section 25 which provides for a housing accommodation scheme to be framed is similar. The trust is required to frame such a scheme if it is of the opinion that it is expedient and for the public advantage to provide housing accommodation for any class of inhabitants within its local area. The trust is, therefore, to be motivated not by personal but by public benefit. Such activities clearly fall 69 of 74 ITA-62-2015 and ITA 147-2016 - 70 - within the last category of cases in the proviso to Section 2(15) as it stood at the relevant time, namely, "advancement of an object of general public utility". 81. It can hardly be suggested that the Government of Punjab established the assessee'....
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....f India and another ITA No. 164 of 2012. The Division Bench dismissed the appeal with the following order:- "1. The instant appeal under section 260-A of the Income Tax Act, 1961 (for brevity, the Act) is directed against order dated 14.06.2012 passed by the Income Tax Appellate Tribunal, Amritsar, upholding the order withdrawing the status of Charitable Institution given to the appellant- assessee under Section 12AA(1)(b)(i)of the Act. The Tribunal has reached a categorical conclusion that the assessee-Jammu Development Authority cannot be regarded as an institution or trust which may have been set up to achieve the objects enumerated under Section 2 of the Act particularly in view of the addition of first and second proviso made by the Finance Act, 2008 w.e.f. 01.04.2009 to Section 12AA of the Act. There are findings of fact that the assessee-appellant has not been acting to advance any of the object concerning general public utility. Even otherwise the proviso which has been added by the Finance Act, 2008 w.e.f. 01.04.2009 stipulates that the advancement of any other object of the general public utility shall not be a charitable purpose, if it involves carrying on of any activ....