2025 (10) TMI 660

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....0.11.2017 for Assessment Year 2006-07. 2. Brief facts of the case are that assessee is a Local Authority and constituted in terms of section 3 of Uttar Pradesh Industrial Area Development Act, 1976. The assessee is granted registration u/s 12AA of the Act in terms of the order of ld. CIT(E), Lucknow dated 08.05.2017 as a charitable institution carrying out activity of General Public Utility. The assessee was also notified as an authority constituted by State Government u/s 10(46) for the assessment years 2014-15 to 2018-19 in terms of notification issued on 24.12.2020. The assessee is functioning as an arm of State Government through its officers and engaged in the work of village development, infrastructure development for the whole are....

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....local authority and is a non-profit organization and thus not required to maintain books of accounts as prescribed u/s 44AA of the Act which provides maintenance of books of accounts in respect of those assessee who are engaged in business or profession. The Ld. AR further submits that AO has initiated penalty proceedings u/s 271A for non-maintenance of books of accounts and once the assessee was held as liable for penalty u/s 271A, how the penalty for non-audit of books could be levied u/s 271B of the Act as no book of accounts were maintained. 5. He further submits that AO includes interest on FDR of Rs. 49,92,885/- and SB account interest of Rs. 8,106/-which should not be forming part of the total receipts for the purpose of section 4....

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.... Authority engaged in the development of the area assigned to it as per the Uttar Pradesh Development Act, 1976 and, therefore, its receipts are exempt in terms of section 10(46) of the Act. It is further seen that Hon'ble Supreme Court in the case of ACIT(Exemptions) vs. Ahmedabad Urban Development Authority [2023] 4 SCC 561 has held that the assessee is eligible for registration u/s 12A of the Act and further held that is the activities are not commercial in nature and are eligible for exemption u/s 10(46) of the Act. The assessee was also notified as eligible for exemption u/s 10(46) from AY 2014-15 to AY 2018-19 in terms of notification dt. 24.12.2020. 9. The Institute of Chartered Accountants of India in the Guidance notes on Tax Au....