C.I.T. EXEMTION JAIPUR vs. U.I.T. MODEL TOWN, SRI GANGANAGAR

ITA/19/2015HC RajasthanRJHC01035162201402 December 20162 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the respondent-assessee, being an Urban Improvement Trust, Sri Ganganagar, is a charitable body. This finding is based on the precedent set by a Division Bench of the same High Court in Commissioner of Income Tax (I) Jodhpur Vs. Jodhpur Development Authorities, Jodhpur, decided on July 5, 2016, which established that Urban Improvement Trusts are charitable bodies. Consequently, since the assessee is registered under Section 12-A of the Income Tax Act, 1961, it is entitled to exemption. The Court found no just reason to interfere with the order passed by the Income Tax Appellate Tribunal. The appeal was dismissed.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Exemption), Jaipur (appellant/revenue) against the order of the Income Tax Appellate Tribunal (ITAT). The respondent-assessee is the Urban Improvement Trust (UIT), Sri Ganganagar. The UIT is registered under Section 12-A of the Income Tax Act, 1961, and claims entitlement to exemption. The specific assessment year(s) and the amount in dispute are not recorded in the provided judgment. The procedural history leading to the ITAT's order is also not detailed.

What were the issues?

1. Whether the respondent-assessee, being an Urban Improvement Trust, is a charitable body entitled to exemption under the Income Tax Act, 1961, specifically in light of its registration under Section 12-A. The appellant (revenue) relied on the view taken by a Division Bench of the Rajasthan High Court in Commissioner of Income Tax (I) Jodhpur Vs. Jodhpur Development Authorities, Jodhpur, decided on July 5, 2016, which held that Jodhpur Development Authorities as well as Urban Improvement Trusts are charitable bodies. The respondent (assessee) contended that as a body registered under Section 12-A of the Act, it is entitled to exemption.

Which sections of the Income-tax Act were involved?

Section 12-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B.INCOME TAX APPEAL NO. 19 / 2015 C.I.T. (EXEMTION) JAIPUR ----Appellant Versus U.I.T. MODEL TOWN, SRI GANGANAGAR, SRI-GANGANAGAR (RAJASTHAN) ----Respondent __________________________________________ Mr. K.K. Bissa, for appellant. __________________________________________ HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MR. JUSTICE SANJEEV PRAKASH SHARMA Judgment Per 02/12/2016

Division Bench of this Court in Commissioner of Income Tax (I) Jodhpur Vs. Jodhpur Development Authorities, Jodhpur decided on July 5, 2016 has taken a view that Jodhpur Development Authorities as well as Urban Improvement Trust is a charitable body. In the case in hand, the respondent-assessee is Urban Improvement Trust, Sri Ganganagar. The assessee being a body registered under Section 12-A of the Act of 1961 is entitled to have exemption. In view of it, we do not find any just reason to interfere

(2 of 2 ) [ITA-19/2015] with the order passed by the Income Tax Appellate Tribunal. The appeal is dismissed accordingly. (SANJEEV PRAKASH SHARMA)J. (GOVIND MATHUR)J. ns.

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