KAKATIYA URBAN DEVELOPMENT AUTHORITY,WARANGAL vs. ASST. COMMISSIONER OF INCOME TAX, (EXEMPTIONS), HYDERABAD

ITA 1726/HYD/2019Status: DisposedITAT Hyderabad26 December 2022AY 2013-1425 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the issue of whether the activities undertaken by the assessee for development charges, layout regularization, and building penalization were allowable, and if the receipts exceeded the threshold limit under Section 2(15), needed to be examined in light of the Supreme Court's judgment in Ahmedabad Urban Development Authority. Consequently, the matter was remitted back to the Assessing Officer for de novo examination.

What were the facts?

The assessee, an Urban Development Authority, collected development charges and other fees. The assessee claimed that only 15% of the development charges represented its income, with the remaining 85% belonging to the State Government for infrastructure development. The Revenue disputed the allowability of certain expenditures and the classification of receipts.

What were the issues?

Whether 85% of development charges collected by the assessee are not its income and are to be utilized for infrastructure development. Whether the activities of the assessee fall under the general public utility clause and if receipts exceed the threshold limit under Section 2(15).

Which sections of the Income-tax Act were involved?

Section 2(15),Section 10(46),Section 12AA,Section 148,Section 142(1),Section 144,Section 251(1)(a)

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: Before Shri Rama Kanta Panda & Shri Laliet Kumar

For Appellant: Ms. Sandhya
For Respondent: Shri Jeevanlal Lavidiya –
Hearing: 21.12.2022Pronounced: 26.12.2022

PER BENCH : The captioned ten appeals filed by the assessee and Revenue are against the common order passed by the learned Commissioner of Income Tax (Appeals) – 9, Hyderabad dt.23.09.2019 for the above-mentioned assessment years.

2.

The only effective ground raised by the assessee in ITA No.1722/Hyd/2019 for A.Y. 2009-10 reads as under :

“The Ld. CIT (A) ought to have held that 85% of the Development

The order continues below.

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