TaxTMI 
TaxTMI 
2023 (1) TMI 423
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....ircumstances of the case and in law, the Appellate Tribunal is justified in allowing the assessee's appeal, negating the finding of the Assessing Officer denying the benefits of section 11 and 12 of the Act ? [B] Whether, on the facts and circumstances of the case, and in law, the Appellate Tribunal is justified in giving the benefit of Section 11 and 12 which the Assessing Officer disallowed by invoking the provision of Section 2(15) r.w.s. 13(8) of the Act ? [C] Whether, on the facts and circumstances of the case, and in law, the Appellate Tribunal is justified in setting aside the issue of addition of Rs.802,93,06,925/- made on account of premium on land and shades back to the Assessing Officer in view of the applicability of Secti....
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....uestions are raised essentially challenge is of giving benefit of Section 11 and 12, disallowed by the Assessing Officer by invoking of provision of Section 2(15) read with Section 13 (8) of the Income Tax Act, 1961 (for short "ITAT" ) 3. Tribunal on the ground that the issue is covered in assessee's own case by the order of the Coordinate Bench of Tribunal and affirmed by this Court in the case of CIT Vs. Gujarat Industrial Development Corporation [(2017) 80 taxman.com 366 (Guj)] has chosen to address the issue. The Assessee-Corporation was constituted under the Gujarat Industrial Development Act, 1962 for the purpose of securing and assisting rapid and orderly establishment and organization of Industrial areas and Industrial estates in t....
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....nvolved in the advancement of objects of general public utility, therefore are entitled to be considered as charities in the GPU categories. (iii) Such statutory corporations, boards, trusts authorities, etc. may be involved in promoting public objects and also in the course of their pursuing their objects, involved or engaged in activities in the nature of trade, commerce or business. (iv) The determinative tests to consider when determining whether such statutory bodies, boards, authorities, corporations, autonomous or self- governing government sponsored bodies, are GPU category charities: (a) Does the state or central law, or the memorandum of association, constitution, etc. advance any GPU object, such as development of housin....
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....ing lease rent, ground rent, etc., per se, recovery of such charges, fee, interest, etc. cannot be characterized as "fee, cess or other consideration" for engaging in activities in the nature of trade, commerce, or business, or for providing service in relation in relation thereto; (e) Does the statute or controlling instrument set out the policy or scheme, for how the goods and services are to be distributed; in what proportion the surpluses, or profits, can be permissively garnered; are there are limits within which plots, rates or costs are to be worked out; whether the function in which the body is engaged in, is normally something a government or state is expected to engage in, having regard to provisions of the Constitution and the....
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....ees, or any consideration that merely cover its expenditure (including administrative and other costs plus a small proportion for provision) - such amounts are not consideration towards trade, commerce or business, or service in relation thereto. However, amounts which are significantly higher than recovery of costs, have to be treated as receipts from trade, commerce or business. It is for those amounts, that the quantitative limit in proviso (ii) to Section 2(15) applies, and for which separate books of account will have to be maintained under other provisions of the IT Act. (ii) Statutory regulatory bodies/authorities 5. Hon'ble Apex Court has elaborately dealt with these very issues thus:- 253. A. General test under Section 2(15)....