2023 (4) TMI 1346

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the following grounds of appeal:- "1. Ld. CIT (Exemptions) erred in law and on facts invoking the provisions of Sec. 263 if the Act to hold scrutiny assessment order passed u/s 143(3) of the Act as erroneous and prejudicial to the interest of Revenue. 2. Ld. CIT (E) erred in law and on facts in holding order as erroneous and prejudicial to the interest of revenue on account of AO having allowed capital expenditure of Rs. 2, 03, 54, 26,000/- without properly examining the expenses in view of provisions of Sec. 13(8) of the Act as well as case records of preceding year and without obtaining any supporting details and/or proper verification. 3. Ld. CIT (E) erred in law and on facts holding order passed by AO follow....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....es incurred by the assessee to the tune of Rs 2,03,54,26,000/-. As per the Principal CIT, if the exemption claimed by the assessee is withdrawn in the light of the provisions of section 13(8) of the Act, then the capital expenditure is also required to be disallowed and added back to the total income of the assessee. The Principal CIT observed that in the immediately preceding year i.e. assessment year 2016-17, the capital expenditure was disallowed by the then AO in the light of the provisions of section 13(8) of the Act. However, during the year under consideration, the AO has allowed the capital expenditure incurred by the assessee amounting to Rs 2,03,54,26,000/-. In view of the above, the Principal CIT held that the order passed by the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....edabad Urban Development Authority 143taxmann.com 278 (SC)) also upheld/affirmed the order passed by the Gujarat High Court and held that Statutory Corporations, Boards, Authorities, Commissions, etc. (by whatsoever names called) in housing development, town planning, industrial development sectors are involved in advancement of objects of general public utility, and are therefore entitled to be considered as charities in general public utility categories. Accordingly, since both the Gujarat High Court as well as Honourable Supreme Court have both decided the issue in favour of the assessee, the order passed by the assessing officer cannot be held to be erroneous and prejudicial to the interests of the revenue. Further, the counsel for the ....