ITO, Exemption Ward, Saharanpur v. Saharanpur Development Authority, Saharanpur

ITA 4113/DEL/2017 | 2012-2013
Pronouncement Date: 24-03-2021 | Result: Dismissed

Appeal Details

RSA Number 411320114 RSA 2017
Assessee PAN AAALS0359L
Bench Delhi
Appeal Number ITA 4113/DEL/2017
Duration Of Justice 3 year(s) 9 month(s) 2 day(s)
Appellant ITO, Exemption Ward, Saharanpur
Respondent Saharanpur Development Authority, Saharanpur
Appeal Type Income Tax Appeal
Pronouncement Date 24-03-2021
Appeal Filed By Department
Order Result Dismissed
Bench Allotted G
Tribunal Order Date 24-03-2021
Last Hearing Date 25-02-2021
First Hearing Date 25-02-2021
Assessment Year 2012-2013
Appeal Filed On 21-06-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SH. BHAVNESH SAINI JUDICIAL MEMBER DR. B. R. R. KUMAR ACCOUNTANT MEMBER (THROUGH VIDEO CONFERENCING) ITA NO. 4113/DEL/2017 : ASSTT. YEAR : 2012-13 INCOME TAX OFFICER (E) SAHARANPUR U.P. VS SAHARANPUR DEVELOPMENT AUTHORITY YADAVPURI NEAR GANNA BHAWAN SAHARANPUR U.P. (APPELLANT) (RESPONDENT) PAN NO. A A ALS0359L ASSESSEE BY : SH. SANJAY KUMAR CA REVENUE BY : SH. DILIP KOTHARI CIT DR DATE OF HEAR ING: 25 . 0 2 .20 2 1 DATE OF PRONOUNCEMENT: 24 .03 .20 2 1 ORDER PER DR. B. R. R. KUMAR ACCOUNTANT MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE A GAINST THE ORDER OF THE LD. CIT(A) MUZAFFARNAGAR DATED 20 .03.2017. 2. FOLLOWING GROUNDS HAVE BEEN RAISED BY THE REVENU E: 1. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING TO ALLOW THE BENEFIT OF SECTION 11/12A A OF I.T ACT AND TREATING THE ACTIVITY AS CHARITABLE RELYIN G ON THE DECISION OF HIGH COURT IN THE CASE OF LUCKNOW DEVEL OPMENT AUTHORITY WITHOUT CONSIDERING THE FACT THAT SLP IN ONE OF THE CASE OF DEVELOPMENT AUTHORITY I.E. KHURJA DEVEL OPMENT AUTHORITY HAS BEEN ADMITTED BY THE HONBLE SUPREME COURT ON THE ISSUE. 2. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN DIRECTING THE ALLOW THE BENEFIT OF SECTION 11/12AA OF THE ACT WITHOUT CONSIDERING THE FACT THAT THE HONBLE JAMMU & KASHMIR HIGH COURT HAS UPHELD THE ORDER OF THE A.O IN THE CASE OF JAMMU DEVELOPMENT AUTHORITY JAMMU AND THE SLP ITA NO. 4113/DEL/2017 SAHARANPUR DEVELOPMENT AUTHORITY 2 FILED BY THE JAMMU DEVELOPMENT AUTHORITY HAS NOT B EEN ADMITTED BY THE HONBLE SUPREME COURT. 3. THAT THE LEARNED CIT(A) HAS ERRED IN LAW AND ON FACTS IN TREATING THE INFRASTRUCTURE FUND AMOUNT OF RS.3 73 81 705/- ( NET) RECEIPT FOR SPECIFIC PURPOS E WHEREAS IT IS REVENUE RECEIPT SUBJECT TO INCOME & EXPENDITURE A/C AND SUBJECT TO TAX. 3. THE ISSUE OF TREATING THE ACTIVITY OF THE VARIOU S CITY DEVELOPMENT AUTHORITIES AS CHARITABLE OR NOT HAS BE EN ADJUDICATED BY VARIOUS COURTS AND TRIBUNALS WHICH C ONSISTENTLY HELD THAT THE ACTIVITY OF ACQUIRING LAND DEVELOPME NT OF PLOTS AND CONSTRUCTION OF RESIDENTIAL AS WELL AS COMMERCI AL PLACES IS AN ACTIVITY CONSIDERED AS CHARITABLE IN NATURE. 4. TO QUOTE A FEW JUDGMENTS CIT VS HRIDWAR DEVELOPMENT AUTHORITY [ITA NO. 3056 &3013/DEL/2013 DATED 25.07.2014 CIT VS MUZAFFARNAGAR DEVELOPMENT AUTHORITY CIT VS KHURJA DEVELOPMENT AUTHORITY [ITA NO. 1851/DEL/2009 DATED 14.07.2009] JALANDHAR DEVELOPMENT AUTHORITY 124 TTJ 598 THE IMPROVEMENT TRUST MOGA VS CIT LUDHIANA [ITA 365/ASR/2013 DATED 16-09-2015] CIT VS SANGRUR DEVELOPMENT AUTHORITY CIT VS GHAZIABAD DEVELOPMENT AUTHORITY IN [ITA NO. 2399/DEL/2014 DATED 16.06.2019] CIT VS JHANSI DEVELOPMENT AUTHORITY CIT VS LUCKNOW DEVELOPMENT AUTHORITY [(2013) 38 TAXMANN.COM 246 (ALL.) AGRA DEVELOPMENT AUTHORITY VS CIT [(2013) 31 TAXMANN.COM 40 (ITAT AGRA BENCH) MATHURA DEVELOPMENT AUTHORITY VS CIT [(ITA NO. 13/AGRA/2013 DATED 19.07.2013 JAIPUR DEVELOPMENT AUTHORITY VS CIT [(2014) 52 TAXMANN.COM 25 (ITAT JAIPUR BENCH)] KAPURTHALA DEVELOPMENT TRUST VS CIT [(ITA NO. 732/ASR./2013 DATED 11.06.2015 M/S PATIALA URBAN PLANNING & DEVELOPMENT AUTHORITY VS CIT [ITA NO. 775/CHD./2015 DATED 04.12.2015] ITA NO. 4113/DEL/2017 SAHARANPUR DEVELOPMENT AUTHORITY 3 5. WITH REGARD TO THE INFRASTRUCTURE DEVELOPMENT F UND IN THE INSTANT CASE THE AO HELD THAT THE AMOUNT SHOU LD HAVE BEEN FIRST CREDITED IN THE INCOME AND EXPENDITURE A CCOUNT AND THE AMOUNT SPENDS OUT OF THE SAME SHOULD HAVE BEEN DEBITED TO THIS ACCOUNT. IT IS AN UNDISPUTABLE FACT THAT THE F UND IS NOT UNDER THE EXCLUSIVE CONTROL OF THE ASSESSEE AND THE EXPENDITURE TO BE INCURRED OUT OF THE INFRASTRUCTURE FUNDS ARE APPROVED ON THE RECOMMENDATION OF HIGH POWERED COMMITTEE. 6. IT IS NOTED FROM THE MATERIAL ON RECORD THAT IN THE CASE SIMILAR ISSUE HAS BEEN DECIDED IN THE CASE OF THE A SSESSEE FOR THE ASSESSMENT YEARS 2004-05 TO 2007-08 BY THE CO-O RDINATE BENCH OF ITAT G BENCH DELHI WHERE IN IT WAS HELD THAT THE APPELLANT HAS RECEIVED INFRA STRUCTURE FUNDS UN DER THE ORDERS OF GOVT. OF U.P. AND IT WAS REQUIRED TO USE SUCH FUNDS AS PER THE DIRECTION OF THE HIGH POWERED COMMITTEE AND HAS NO CONTROL OVER THE SAID FUNDS. THEREFORE THE INTERES T INCOME FROM SUCH FUNDS IS NOT THE INCOME OF THE APPELLANT . 7. THIS OBSERVATION HAS BEEN GIVEN CONSISTENTLY BY THE ITAT IN FAVOUR OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2004-05 TO 2007-08. FURTHER THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF LUCKNOW DEVELOPMENT AUTHORITY HAS HELD THAT THE MONEY TRANSFERRED TO THE INFRA STRUCTURE FUND ACCOUNT IS TO BE UTILIZED FOR THE PURPOSE OF THE PROJECTS AS SPECIFIED BY THE COMMITTEE HAVING CONSTITUTED BY THE STATE GOVERNMENT AND CANN OT BE TREATED AS BELONGING TO THE AUTHORITY OR RECEIPT IS TAXABLE NATURE IN ITS HAND. ITA NO. 4113/DEL/2017 SAHARANPUR DEVELOPMENT AUTHORITY 4 8. IN THE ABSENCE OF ANY CHANGE IN THE FACTUAL MATR IX BROUGHT TO OUR NOTICE BY EITHER OF THE PARTIES WE HEREBY D ECLINE TO INTERFERE WITH THE ORDER OF THE LD. CIT (A). 9. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 24/03/2021. SD/- SD/- (BHAVNESH SAINI) (DR. B. R. R. KUMAR) JUDICIAL MEMBER ACC OUNTANT MEMBER DATED: 24/03/2021 *SUBODH* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR