2025 (4) TMI 1931

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.... section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'). 2. Heard both the parties. Case file perused. 3. Coming to the assessee's sole substantive ground claiming section 10(46) exemption of Rs.61,96,00,000/- disallowed in the course of assessment framed by the Assessing Officer on 29th March, 2016; it emerges that the learned CIT(A) has upheld the same in the following preliminary terms: "6. Grounds of appeal no. 1(i) to 1(iii) are against the disallowance of exemption claimed u/s 10(46) of the Income Tax Act, 1961 amounting to Rs. 61,96,00,000/-, made by the AO. 6.1. The appellant is a State Government Corporation engaged in the activities of industrial development of National capital Re....

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....rred to in this clause, which the Central Government may, by notification in the Official Gazette, specify in this behalf: 6.4.2. In the written submissions, appellant's AR has submitted that the appellant has claimed the exemption u/s. 10(46) in respect of various activities carried out for the benefit of general public and also applied for issue of notification by Central Government. In view of above position, the claim of exemption is in accordance with provisions of sec. 10(46) of I.T Act, 1961. It has been subimmted that:. 1. The appellant is a State Government Corporation. 2. It has been established with the object of regulating and administering various activities for the benefit of general public under....

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....tion claimed exempt u/s. 10(46) due to our authority status. As act passed by Delhi State Assembly namely, "The Delhi Industrial Development Operation and Maintenance Act, 2010 notified on 28.03.2011. Section 10(46) was notified in the F.Y. 2012-13 accordingly, our corporation had applied in CBDT (Ministry of Finance) for gront of exemption. In view of the above clarification no disallowance u/s. 801A(4) arise. However, our claim for exemption u/s. 10(46) may be allowed as our application for grant of an exemption is still pending before CBDT. A copy of Act is enclosed for your record and reference." 4.3 Vide reply dated 30.12.2015, the assessee has furnished its submission, the relevant extract of which is as follows:- "t....

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.... has not accepted claim of exemption u/s. 10(46), making the following observation as per para 4 of the assessment order. 4.6. The assessee company has falled to fulfill the eligibility condition as per 10(46)(c) as there is no notification by the Central Government in the Official Gazette for the purpose of this clause. The assessee company has also falled to fulfill the eligibility condition as per 10(46)(b) as the assessee company engaged in commercial activity i.e. sale of liquor and is therefore ineligible for the purposes of this clause. In view of the above, exempted amount of Rs. 61.96 Cr. Under head Industrial Development Operational Fund (Reserve Fund, Note 26 of Balance sheet) is hereby disallowed and added back to the i....