UNIT IMPROVEMENT TRUST, BHARATPUR,BHARATPUR vs. DY. COMMISSIONER OF INCOME TAX (EXEMPTIONS), JAIPUR, JAIPUR

ITA 949/JPR/2025Status: DisposedITAT Jaipur15 October 2025AY 2015-16Bench: Dr. S. SEETHALAKSHMI (Judicial Member), SHRI GAGAN GOYAL (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the assessee is a 'State' within the meaning of Article 289(1) of the Constitution of India due to deep and pervasive State control, monopoly status, and public importance of its functions. Consequently, the assessee's income is not chargeable under the Income Tax Act.

What were the facts?

The assessee, Urban Improvement Trust, claimed exemption under Section 10(20) and later sought registration under Section 12A. The Assessing Officer made additions for amounts set apart under Section 11(2) due to issues with filing Form 10. The assessee contended that the delay in filing Form 10 was procedural and that the amounts were duly set apart and reported in Form 10B.

What were the issues?

Whether the assessee qualifies as an instrumentality of the State under Article 289(1) of the Constitution, rendering its income not chargeable to tax, and whether procedural delays in filing Form 10 should lead to disallowances.

Which sections of the Income-tax Act were involved?

Section 11(2),Section 10(20),Section 12A

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Income Tax Appellate Tribunal, JAIPUR BENCH “A”, JAIPUR

Before: Dr. S. SEETHALAKSHMI & SHRI GAGAN GOYAL

For Appellant: Mr. Tarun Agarwal, CA, ld. AR
For Respondent: Mr. Rajesh Ojha, CIT, ld. DR
Hearing: 15/10/2025Pronounced: 15/10/2025

PER GAGAN GOYAL, A.M:

These two appeals by assessee is directed against the order of NFAC, Delhi dated 17.09.2024 passed u/s. 250 of the Income Tax Act, 1961 (in short ‘the Act’). In ITA No. 949/JPR/2025, the assessee has raised the following grounds of appeal:- Urban Improvement Trust Pvt. Ltd.

1.

The learned CIT (A) as well as Ld DCIT (Exemption) has erred in law as well as in fact in making addition of Rs.7,15,36,230/- merely on the ground that Form 10 could not be e-filed by the assessee while the requirement to e-file the same was introduced from the A.Y. 2016-17. 2. The Ld. CIT(A) failed to consider that the Appellant duly submitted Form-10 subsequently, and the s

The order continues below.

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