The Commissioner of Income-tax (Exemptions) v. Gandhinagar Urban Development Authority
[Citation -2020-LL-0930-40]

Citation 2020-LL-0930-40
Appellant Name The Commissioner of Income-tax (Exemptions)
Respondent Name Gandhinagar Urban Development Authority
Court HIGH COURT OF GUJARAT AT AHMEDABAD
Relevant Act Income-tax
Date of Order 30/09/2020
Assessment Year 2013-14
Judgment View Judgment
Keyword Tags nature of business • quantum of tax • accumulation


C/TAXAP/272/2020 ORDER IN HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 272 of 2020 COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus GANDHINAGAR URBAN DEVELOPMENT AUTHORITY Appearance: MR MR BHATT, SR. ADVOCATE WITH MRS MAUNA M BHATT(174) for Appellant(s) No. 1 for Opponent(s) No. 1 CORAM:HONOURABLE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA Date : 30/09/2020 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1 This Tax Appeal is at instance of Revenue, being dissatisfied with order passed by Income Tax Appellate Tribunal, B Bench, Ahmedabad, in ITA No.2439/Ahd/2017 for A.Y.2013-14. 2 Revenue has proposed following substantial questions of law for consideration of this Court: [A] Whether on facts and circumstances of case and in law, Appellate Tribunal was justified in allowing benefit of exemptions under sections 11 & 12 of Act without considering fact that assessee is involved in widespread commercial activities in nature of business and activity of assessee is covered under provisions of section 2(15) of Act and us, exemption u/s. 11 & 12 of Act is not allowable to assessee? Page 1 of 3 Downloaded on : Tue Oct 06 10:48:18 IST 2020 C/TAXAP/272/2020 ORDER [B] Whether on facts and circumstances of case and in law, Appellate Tribunal was justified in allowing benefit of section 11 of Act relying on decisions of this Hon ble Court in 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 before Hon'ble Supreme Court and are pending? [C] Whether on facts and circumstances of case and in law, Appellate Tribunal was justified in allowing benefit of accumulation of Rs.21,14,70,257/- u/s.11(1)(2) of Act and accumulation @15% of Rs.10,01,66,877/- without appreciating fact that once proviso to section 1 & 2 to section 2(15) is applicable, benefit u/s.11 and 12 of Act cannot be allowed to assessee? [D] Whether on facts and circumstances of case and in law, Hon ble Tribunal in allowing benefit of section 11 of Act relying on decision Co-ordinate Bench of Ahmedabad in ITA No.3621/Ahd/2015 which has not been accepted, though further SLP was not preferred on account of quantum of tax involved? 3 We have heard Mr. M.R.Bhatt, learned Senior Counsel assisted by Mrs. Mauna Bhatt, learned Senior Standing Counsel appearing for Revenue and have perused materials on record. questions proposed Page 2 of 3 Downloaded on : Tue Oct 06 10:48:18 IST 2020 C/TAXAP/272/2020 ORDER by Revenue are no longer res integra in view of judgment of this very Court rendered in Tax Appeal No.79 of 2020 dated 25.02.2020. All questions proposed are squarely covered by decision rendered in case of Ahmedabad Urban Development Authority vs. ACIT (Exemption), 2017 396 ITR 323 (Guj.). 3 In result, Appeal fails and is hereby dismissed. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) A. B. VAGHELA/P.SUBRAHMANYAM Page 3 of 3 Downloaded on : Tue Oct 06 10:48:18 IST 2020 Commissioner of Income-tax (Exemptions) v. Gandhinagar Urban Development Authority
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