TaxTMI 
TaxTMI 
2023 (4) TMI 392
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....by the Revenue. [A] "Whether, on the facts and circumstances 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.703,30,00,837 made on account of premium on land and shades ....
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....e 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 the State of Gujarat and for the purpose of establishing the commercial centers in connection with establishment and organization of such industries. It is also held that it could not be said that the activities carried out by the Assessee were either in nature of trade, comm....
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....c 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 housing, town planning, development of industrial areas, or regulation of any activity in the general public interest, supply of essential goods or services - such as water supply, sewage service, distributing medicines, of food grains (PDS....
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....usiness, 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 enacted laws, and the observations of this court in NDMC; whether in case surplus or gains accrue, the corporation, body or authority is permitted to distribute it, and if so, only to the government or state; ....
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....rce 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 decided these questions. 253. A. General test under Section 2(15) A.1. It is clarified that an assessee advancing general public utility cannot engage itself in any trade, commerce or business, or provide service in relation thereto for any considerat....