PUNJAB URBAN PLANNING AND DEVELOPMENT AUTHORITY,MOHALI vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 6(1), MOHALI

ITA 634/CHANDI/2024Status: DisposedITAT Chandigarh01 October 2026AY 2016-178 pages
AI SummaryRemanded

What were the facts?

The assessee, Punjab Urban Planning and Development Authority (PUDA), is appealing against orders for Assessment Years (AYs) 2015-16, 2016-17, 2017-18, and 2021-22. The appeals arise from assessments framed by the Assessing Officer (AO) under section 143(3) of the Income Tax Act, 1961, and subsequent orders of the Commissioner of Income Tax (Appeals) [CIT(A)]. The assessee, a statutory authority, was previously exempt under section 10(20) until AY 2002-03. Post-amendment, it became taxable. During scrutiny, the AO alleged non-cooperation and failure to disclose true accounts, leading to an assessment of Rs. 1631.33 Crores after additions. The CIT(A) partly allowed the assessee's appeal. The assessee is now before the Income Tax Appellate Tribunal (ITAT). The assessee's representative requested a remand back of the appeals due to subsequent developments, including a judgment from the jurisdictional High Court concerning its registration under section 12AA.

What did the Tribunal hold?

The Tribunal accepted the prayer of the Learned Authorized Representative (AR) for remand. The Tribunal noted that the assessee had applied for registration under section 12A in 2003, which was initially rejected. However, significant subsequent developments occurred, including the grant of provisional and permanent registration under the new regime (Forms 10AC and 10AB) for AY 2022-23 onwards, and exemption under section 10(46A). Crucially, the Hon'ble P&H High Court, in the assessee's own case, had set aside previous orders and remanded the matter to the CIT(E) for a fresh decision on the section 12AA application, considering Supreme Court judgments. The Tribunal acknowledged that these developments, including the retrospective effect of the section 12AB registration, had a direct bearing on the appeals. The Learned CIT-DR also conceded that these subsequent developments were material. Therefore, the Tribunal held that it would be appropriate for these issues to be first examined by the lower authorities. Accordingly, all four impugned orders were set aside, and the assessments for all four years were restored to the Assessing Officer for de novo assessment, taking into account the subsequent developments and the directions of the Hon'ble Court. All issues were kept open, and the assessee was directed to plead its case forthwith. The appeals were allowed for statistical purposes.

What were the issues?

1. Whether the appeals should be remanded back to the Assessing Officer for fresh consideration in light of subsequent developments and the Hon'ble P&H High Court's judgment in the assessee's own case regarding registration under section 12AA? (Question of mixed law and fact, concerning procedural fairness and re-examination of facts). Assessee's Contentions: - The assessee, a statutory authority, applied for registration under section 12A in 2003, which was rejected by the CIT(E) and later by the ITAT, and was under challenge before the Hon'ble P&H High Court. - Subsequently, the assessee obtained provisional registration under the new regime in Form 10AC (AY 2022-23 to 2024-25) and permanent registration in Form 10AB (AY 2022-23 to 2026-27) after thorough inquiry and considering the Ahmedabad Urban Development Authority (SC) judgment. - The assessee also obtained exemption under section 10(46A) via CBDT Notification No. 172/2025. - The Hon'ble P&H High Court, in assessee's own case (ITA No. 599/2026, dated 14.01.2026), set aside impugned orders and remanded the matter to CIT(E) for fresh decision on section 12AA application, in light of SC judgments in Ahmedabad Urban Development Authority and Gujarat Maritime Board. - These developments are relevant to the assessee's charitable character and entitlement to registration, which is pending before CIT(E). - The subsequent grant of registration under section 12AB in 2022 has retrospective effect as per the proviso to section 12A(2), impacting the current appeals. - Therefore, the appeals should be set aside and restored to the AO for de novo assessment. Revenue's Contentions: - The CIT-DR fairly stated that these subsequent developments would have a material bearing on the assessee's impugned assessments.

Which sections of the Income-tax Act were involved?

Section 10(20),Section 143(3),Section 142(2A),Section 2(15),Section 12A,Section 12AA,Section 12AB,Section 10(46A),Section 12A(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

For Respondent: Smt. Jaishree Sharma (CIT) Ld. DR (Virtual)

Heard together (4 matters)

ITA No.633/Chandi/2024
ITA No.634/Chandi/2024
ITA No.635/Chandi/2024
ITA No.636/Chandi/2024

Read from the judgment's own cause title. This page is filed under one of them.

Manoj Kumar Aggarwal (Accountant Member)

1.

Aforesaid appeals by assessee for Assessment Years (AYs) 2015-16, 2016-17, 2017-18 & 2021-22 have identical fa

The order continues below.

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