Ahmedabad Urban Development Authority v. ACIT

396 ITR 323High Court2017#999 most cited

What is Ahmedabad Urban Development Authority v. ACIT authority for?

Development authorities can continue to be regarded as existing for a 'Charitable Purpose' under Section 2(15) of the Income Tax Act, even after the introduction of the proviso to that section. The contention that such authorities automatically lose their charitable status due to the proviso is incorrect.

108

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2017 to 2026.

Also referred to as

Ahmedabad Urban Development Authority v. ACIT · Section 2(15) proviso · charitable purpose · advancement of general public utility · development authority exemption · Section 11 benefits · interpretation of Section 2(15) · cancellation of registration

Also reported as

287 CTR 473

Sections most often in play

Section 11Section 2(15)Section 12Section 10(20A)Section 13(8)Section 12ASection 250Section 11(1)(a)

Issues it is cited on

section 10(20a)section 13(8)advancement of general public utilityproviso to section 2(15)section 10(46)section 10(20)cancellation of registrationsection 58section 11(4a)section 2(15)section 55section 13(3)

Judgments citing Ahmedabad Urban Development Authority v. ACIT

Baroda Cricket Association, Baroda vs. The Dy.CIT, Circle-5., Baroda

In the result, ITA No. 2841/Ahd/17, i

ITA 336/AHD/2015[2009-10]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2009-10
Section 11Section 2(15)

…ld that the proviso to Section 2(15) was not applicable on the facts of these cases. 17. Learned counsel then refers to and relies upon the judgments of Hon’ble jurisdictional High Court in the cases of Ahmedabad Urban Development Authority Vs ACIT [(2017) 396 ITR 323 (Guj)] and CIT Vs Gujarat Industrial Development Corporation [(2017) 83 taxmann.com 366 (Guj)] in support of the proposition that when activities of the assessee are not in the nature of trade, commerce or business, proviso to Section 2(15) cannot be invoked. Our attention was also invited to Hon’ble Punjab & Haryana High Court’s judgment in th…

Baroda Cricket Association, Baroda vs. The Jt. CIT, Range-5, Baroda

In the result, ITA No. 2841/Ahd/17, i

ITA 2957/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2010-11
Section 11Section 2(15)

…ld that the proviso to Section 2(15) was not applicable on the facts of these cases. 17. Learned counsel then refers to and relies upon the judgments of Hon’ble jurisdictional High Court in the cases of Ahmedabad Urban Development Authority Vs ACIT [(2017) 396 ITR 323 (Guj)] and CIT Vs Gujarat Industrial Development Corporation [(2017) 83 taxmann.com 366 (Guj)] in support of the proposition that when activities of the assessee are not in the nature of trade, commerce or business, proviso to Section 2(15) cannot be invoked. Our attention was also invited to Hon’ble Punjab & Haryana High Court’s judgment in th…

Gujarat Cricket Association, Ahmedabad vs. The Jt..Director of Income Tax(Exemption), Ahmedabad

In the result, ITA No. 2841/Ahd/17, i

ITA 1257/AHD/2013[2009-10]Status: DisposedITAT Ahmedabad24 Jan 2019AY 2009-10
Section 11Section 2(15)

…ld that the proviso to Section 2(15) was not applicable on the facts of these cases. 17. Learned counsel then refers to and relies upon the judgments of Hon’ble jurisdictional High Court in the cases of Ahmedabad Urban Development Authority Vs ACIT [(2017) 396 ITR 323 (Guj)] and CIT Vs Gujarat Industrial Development Corporation [(2017) 83 taxmann.com 366 (Guj)] in support of the proposition that when activities of the assessee are not in the nature of trade, commerce or business, proviso to Section 2(15) cannot be invoked. Our attention was also invited to Hon’ble Punjab & Haryana High Court’s judgment in th…

Gujarat Housing Board (Ghb), Ahmedabad vs. The D.C.I.T. (Exemption), Circle-1, Ahmedabad

In the result, the appeal is allowed in the terms indicated above

ITA 3297/AHD/2016[2012-13]Status: DisposedITAT Ahmedabad16 Nov 2018AY 2012-13

Bench: Him) Of Denying Exemption To The Appellant’S Income U/S.11 & 12 Of The Income Tax Act, 1961 As Claimed In The Appellant’S Return, On The Ground That The Appellant’S Case Attracted The First Proviso To Section 2(15) & In Turn, Sub-Section(8) Of Section 13 Of The Act.

Section 11Section 11(1)(a)Section 11(2)Section 12ASection 13Section 143(3)Section 2(15)

…r judicial forums. The action of the authorities below cannot, therefore, meet our judicial approval. 9. While on the issue, we may also refer to Hon’ble jurisdictional High Court’s judgment in the case of Ahmedabad Urban Development Authority Vs PCIT [(2017) 396 ITR 323 (Guj)] wherein, in materially similar circumstances, Their Lordships have, inter alia, observed as follows: “………….The purpose and object of constitution of the Urban Development Authority is proper development or re development of urban area. Even Urban Development Authority consists of (i) a Chairman to be appointed by the State Government; (ii)…

The Fine Arts Society, Mumbai vs. ITO (E) 2(4), Mumbai

In the result, both the appeals of the assessee are party allowed

ITA 189/MUM/2017[2012-13]Status: DisposedITAT Mumbai04 Jul 2018AY 2012-13

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 2171/Mum/2016 (Inaqa-Arna Baya- / Assessment Year 2011-12)

For Appellant: Shri Vijay MehtaFor Respondent: Shri Rajesh Kumar Yadav, DR
Section 11Section 12Section 143(3)Section 2(15)

…it is clear that it was incurring expenditure in the fields of education and medical relief. Therefore, in our opinion, the assessee cannot be denied the benefit of section 11.Here, we would like to refer to the case of Ahmedabad Urban Development Authority (396 ITR 323)of the Hon’ble Gujarat High Court wherein the court has held as under: “The introduction of the proviso to section 2(15) of the Income-tax Act, 1961, by virtue of the Finance Act, 2008 was directed to prevent the unholy practice of pure trade, commerce and business entities from masking their activities and portraying them in the garb of an acti…

The Fine Arts Society, Mumbai vs. Dy Director of Income Tax (Exemptions) - 1(2), Mumbai

In the result, both the appeals of the assessee are party allowed

ITA 2171/MUM/2016[2011-12]Status: DisposedITAT Mumbai04 Jul 2018AY 2011-12

Bench: Sri Mahavir Singh, Jm & Sri G Manjunatha, Am Aayakr Apila Sam./ Ita No. 2171/Mum/2016 (Inaqa-Arna Baya- / Assessment Year 2011-12)

For Appellant: Shri Vijay MehtaFor Respondent: Shri Rajesh Kumar Yadav, DR
Section 11Section 12Section 143(3)Section 2(15)

…it is clear that it was incurring expenditure in the fields of education and medical relief. Therefore, in our opinion, the assessee cannot be denied the benefit of section 11.Here, we would like to refer to the case of Ahmedabad Urban Development Authority (396 ITR 323)of the Hon’ble Gujarat High Court wherein the court has held as under: “The introduction of the proviso to section 2(15) of the Income-tax Act, 1961, by virtue of the Finance Act, 2008 was directed to prevent the unholy practice of pure trade, commerce and business entities from masking their activities and portraying them in the garb of an acti…

Shanmukhananda Fine Arts & Sangeetha Sabha, Mumbai vs. DDIT (E) I(2)

ITA 1975/MUM/2016[2011-12]Status: DisposedITAT Mumbai02 Mar 2018AY 2011-12

Bench: S/Sh.Rajendra & Amarjit Singhआयकर अपील सं./I.T.A./1975/Mum/2016,िनधा"रण िनधा"रण वष" वष" /Assessment Year: 2011-12 िनधा"रण िनधा"रण वष" वष" आयकर अपील सं./I.T.A./6858/Mum/2016,िनधा"रण िनधा"रण िनधा"रण वष" िनधा"रण वष" वष" /Assessment Year: 2011-12 वष" Sri Shanmukhananda Fine Arts & Ddit (Exemption)-I-(2) Sangeetha Sabha Piramal Chambers, 5Th Floor 292,Comrade Harbanslal Marg, Vs. Mumbai-400 012. Sion (East)Mumbai-400 022. Pan:Aaats 2694 E (अपीलाथ" /Appellant) (""यथ" / Respondent) राज"व क" ओर से / Revenue By: Shri V. Rajguru-Cit-Dr अपीलाथ" क" ओर से /Assessee By: Shri Vijay Mehta/Govind Javeri सुनवाई क" तारीख / Date Of Hearing: 14/12/2018 घोषणा क" तारीख / Date Of Pronouncement: 02.03.2018 लेखा लेखा सद"य लेखा लेखा सद"य सद"य, राजे"" सद"य राजे"" राजे"" केकेकेके अनुसार राजे"" अनुसार अनुसार /Per Rajendra, Am- अनुसार Challenging The Orders Dated 20/01/2016 Of The Cit(A)-1, Mumbai The Assessee Has Filed The Above Mentioned Two Appeals For The Same A.Y.The First Appeal Is Against The Regular Appellate Order,Whereas The Second Appeal Is About The Rectification Application Filed Under Section 154 Of The Act. We Are Adjudicating Both The Appeals Together. Assessee-A Registered Trust,Filed Its Return Of Income On 27/09/2011,Along With The Income & Expenditure Account & Other Financial Statements Declaring Deficit Of Rs. 27.17 Crores. The Assessing Officer (Ao)Completed The Assessment On,10/03/2014,U/S. 143(3)Of The Act, Determining Its Income At Rs.4.51 Crores.

For Appellant: Shri Vijay Mehta/Govind JaveriFor Respondent: Shri V. Rajguru-CIT-DR
Section 11Section 143(3)Section 154Section 2(15)

…PB,it is clear that it was incurring expenditure in the fields of education and medical relief.Therefore,in our opinion,the assessee cannot be denied the benefit of section 11.Here, we would like to refer to the case of Ahmedabad Urban Development Authority (396 ITR 323)of the Hon’ble Gujarat High Court wherein the court has held as under: “The introduction of the proviso to section 2(15) of the Income-tax Act, 1961, by virtue of the Finance Act, 2008 was directed to prevent the unholy practice of pure trade, commerce and business entities from masking their activities and portraying them in the garb of an activ…

Ahmedabad Urban Development Authority, Ahmedabad vs. The Dy. DIT(Exemption), Ahmedabad

ITA 3272/AHD/2014[2010-11]Status: DisposedITAT Ahmedabad13 Dec 2017AY 2010-11
Section 154

…ar 2010-11. 2. When this appeal was called out for hearing, learned counsel for the assessee fairly submitted that in view of the Hon’ble jurisdictional High Court’s judgment in the case of assessee, i.e. Ahmedabad Urban Development Authority Vs. ACIT, [2017] 396 ITR 323 (Gujarat), wherein the matter has been decided on merits in favour of the assessee, this appeal is wholly academic and infructuous. It is stated that, in this view of the matter and upon recording the facts as such, he has Ahmedabad Urban Development Authority vs DDIT Assessment Year : 2010-11 Page 2 of 2 no objection that the appeal being dism…