COMMISSIONER OF INCOME TAX (EXEMPTIONS) vs. GANDHINAGAR URBAN DEVELOPMENT AUTHORITY

C/TAXAP/131/2022 ORDER DATED: 24/01/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 131 of 2022 ========================================================== COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus GANDHINAGAR URBAN DEVELOPMENT AUTHORITY ========================================================== Appearance: MR MR BHATT IWTH MR MUNJAL BHATT FOR M R BHATT & CO.(5953) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA and HONOURABLE MS. JUSTICE NISHA M. THAKORE

Date : 24/01/2022

ORAL ORDER (PER : HONOURABLE MS. JUSTICE NISHA M. THAKORE) 1. This Appeal is filed at the instance of the Revenue being aggrieved and dissatisfied by the order dated 24.08.2021 passed by the Income Tax Appellate Tribunal, Ahmedabad, in ITA No. 577 /Ahd/2019 for A.Y. 2015-16. 2. In the present Appeal, the Revenue has proposed the following questions of law for consideration of this Court: [A] "Whether on the facts and circumstances of the case and in law, the Appellate Tribunal was justified in allowing the benefit of exemptions u/s.11 & 12 of the Act without considering the fact that the assessee is involved in widespread commercial activities in nature of business and the activity of the assessee covered under the provisions of Section 2(15) of the Act and thus, exemption u/s.11 & 12 of the Act is not allowable to the assessee?" [B] "Whether on the facts and circumstances of the case and in law, the Appellate Tribunal is justified in allowing Page 1 of 3

C/TAXAP/131/2022 ORDER DATED: 24/01/2022 benefit of Section 11 of the Act relying on the decisions of this Hon'ble Court in the case of Ahmedabad Urban Development Authority Vs ACIT (Exemption) in TA No.423 to 425 of 2016 and CIT Vs.Gujarat Industrial Development Corporation reported in (2017) 83 Taxmann.com 366 (Gujarat) which are subject matter of further appeal before the Hon'ble Supreme Court and pending?" [C] "Whether on the facts and circumstances of the case and in law, the Appellate Tribunal is justified in allowing benefit of capital expenditure of Rs.15,07,13,500/- and accumulation @ 15% of Rs.10,46,85,495/- u/s.11(1)(a) without appreciating the fact that once the proviso to section 1 & 2 to Section 2(15) is applicable, the benefit u/ s.11 and 12 of the Act cannot be allowed to the assessee?" [D] "Whether on the facts and circumstances of the case and in law, the Appellate Tribunal is justified in allowing benefit of accumulation of Rs.39,88,00,000/- u/s. 11(2) without appreciating the fact that once the proviso to Section 1 & 2 to section 2(15) is applicable, the benefit u/ s.11 and 12 of the Act cannot be allowed to the assessee?" [E] "Whether on the facts and circumstances of the case and in law, the Appellate Tribunal is justified in allowing benefit of section 11 of the Act relying on the decision of Co-ordinate Bench of Ahmedabad in ITA Nos. 2438,2439 & 2440/Ahd/2017 AYs. 2012-13 to 2014-15, SLP in Dairy No. 8199 of 2021, 8204 of 2021 and 8192 of 2021 subject matter of further appeal before the Hon'ble Supreme Court, which are pending?" 3. We have heard learned senior counsel Mr. M.R. Bhatt assisted by learned counsel Mr. Mujnaj Bhatt for the Revenue. 4. The substantial questions of law raised are no longer res integra in view of the decision of this Court in the case of Page 2 of 3

C/TAXAP/131/2022 ORDER DATED: 24/01/2022 Ahmedabad Urban Development Authority Vs. ACIT (Exemption) reported in (2017) 396 ITR 323 (Gujarat). In view of the aforesaid, present Appeal fails and is hereby dismissed. (J. B. PARDIWALA, J) (NISHA M. THAKORE,J) Y.N. VYAS Page 3 of 3