TaxTMI 
TaxTMI 
2025 (3) TMI 2022
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....ard to the facts and circumstances of the case, the I.d. C.IT(A) has erred in law and on facts in not reversing the action of AO in charging interest u/s. 234A and 234B of the Act . 2. The brief facts of the case are that assessee filed its return of income on 14.3.2022 at NIL income. Thereafter. AO completed the assessment u/s. 143(3)/144B of the Act on 27.12.2022 at an assessed income of Rs. 48,25,64,491/- by adding back the amount of Rs. 127,41,46,000/- which was transferred to development fund to the income of the assessee as the same is not an allowable deduction if the activities are the assessee are not charitable. Against the above, assessee preferred an appeal before the Ld. CIT(A), who vide his impugned order dated 28.3.2024 has affirmed the action of the AO on the above said issue and partly allowed the appeal of the assessee. 3. Aggrieved with the aforesaid, assessee is in appeal before us. 4. At the time of hearing, Ld. Counsel for the assessee submitted that the issue involved in this appeal are no more res-integra as the same has been decided in favour of the assessee by the Hon'ble Allahabad High Court in Assessee's own case in Assessment Year 2003-....
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.... the present respondent assessee, was considered by Co-ordinate bench of this court in Income Tax Appeal No. 657 of 2007 and other connected appeals decided on 29.08.2016 in the matters of Hapur Pilkhuwa Development Authority, Ghaziabad Development Authority, Kanpur Development Authority, A.D.A. Allahabad, Alighar Development Authority, Jhansi Development Authority, Gorkahpur Development Authority and Banda Development Authority in various income Tax appeals and it was held in paragraphs 18, 19, 20, 21 and 22 as under : "18. We find it unnecessary to go for much research work and debate issue further for the reason that in respect to a similar authority, namely, "Lucknow Development Authority", which is also constituted under U.P. Act, 1973, a similar question, whether activities of Development Authority can be said to be 'charitable' as defined under Section 2(15) came up for consideration before a Division Bench in CIT Vs. Lucknow Development Authority 2014 (98) DTR (All) 183 and Court held as under: "21. We have heard learned counsel for the parties and gone through the material available on record. It is undisputed fact that the assessee is a ....
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....istration under Section 12AAA, therefore. cannot be ignored or wished away by the Assessing Officer by adopting a stand that the trust or institution is not fulfilling the conditions for applicability of Sections 11 & 12. In the case of Gestetner Duplicators P. Ltd. vs. CIT (1979) 8 CTR (SC) 371 : (1979) 117 ITR 1 (SC), the Apex Court was called upon to determine as to whether the contribution made by the employer should be treated as a business expenditure, the requirement being contribution should be made to u recognized provident fund. 27. Needless to mention that this Hon'ble Court in the case of CIT vs. M/s. U.P. Forest Corporation Ltd., in Income Tax Appeal No. 70 of 2009 observed that the Forest Corporation being an statutory entity is entitled for the registration under Section 12A of the Act. The said observations was upheld by the Hon'ble Apex Court vide its order dated 12th May, 2011 in Special Leave Petition (Civil) No. 2590 of 2011. 28. We may also like to refer a C.B.D.T. Circular No. 11 of 2008 dated 19th December, 2008 [(2009) 221 CTR (St) I : (2009) 17 DTR (St) 1] wherein the applicability of the commercial activities in respect of charitable ....
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....ve fund IDRF as per the notification dated 15th January, 1998, the money transferred to this funds is to be utilized for the purpose of project as specified by the committed having constituted by the State Government under the said notification and the same could not be treated to be belonging to the "authority" or the receipt of taxable nature in its hands. For this reason also, it appears that the funds are utilized for general utility." 19. The findings and observations in the aforesaid judgment are squarely applicable in the case in hand also. 20. We also find that another statutory body, namely, Krishi Utpadan Mandi Samiti constituted under U.P. Krishi Utpadan Mandi Adhiniyam, 1964 (hereinafter referred to as "Act, 1964") was also registered under Section 12AA of Act, 1961 and the question whether amount transferred to Mandi Parishad would constitute application of income for 'charitable purpose' under Section 11(1)(a) of Act, 1961 has been decided against Revenue by Supreme Court in Commissioner of Income Tax Vs. Krishi Utpadan Mandi Samiti 2012 (12) SCC 267 wherein Court has also confirmed this Court's judgment dated 04.12.2009 passed by this Co....