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

C/TAXAP/71/2021 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 71 of 2021 ================================================================ COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus GANDHINAGAR URBAN DEVELOPMENT AUTHORITY ================================================================ Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH and HONOURABLE MR. JUSTICE BHARGAV D. KARIA

Date : 12/03/2021

ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) 1. This appeal under Section 260A of the Act, 1961 (for short ‘the Act, 1961’) is at the instance of the Revenue arising out of the order dated 31st July, 2020 passed by the Income Tax Appellate Tribunal, “A” Bench, Ahmedabad in Cross­Objection No.5/Ahd/2019 for A.Y.2009­10. 2. The   following   substantial   questions   of   law   are proposed   by   the   Revenue   for   the   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 w/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   is   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   was   justified Page 1 of 2

C/TAXAP/71/2021 ORDER considering the activity of the assessee as engaged in the development of urban area which is in the nature of advancement   of   general   public   utility   not   hit   by   the newly   introduced   first   and   second   proviso   to   section 2(15)  of  the Act  without  considering   the merit  of the issue? [C] Whether on the facts and in the circumstances of the case and in law, the Appellate Tribunal is justified in allowing   benefit   of   accumulation   of   Rs.3,88,53,890/­ u/s.11(1)(2)   of   the   Act   and   accumulation   @15%   of Rs.1,28,91,137/­ without appreciating the fact that once the   proviso   to   sub­section   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 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 pending before the Hon’ble Supreme Court?” 3. All the aforesaid questions of law as proposed by the Revenue are squarely covered by the decision of this Court   in   the   case   of  Ahmedabad   Urban   Development Authority Vs. ACIT(Exemptions)  reported in  2017 396 ITR 323 (Guj.). 4. Adopting   the   same   reasoning   as   per   the   aforesaid decision of this Court none of the questions of law as proposed by the Revenue are res­integra and accordingly, the Appeal fails and is hereby dismissed. (VIKRAM NATH, CJ) (BHARGAV D. KARIA, J) PALAK Page 2 of 2