The Commissioner Of Income Tax (Exemptions v. Gandhinagar Urban Development Authority

IN THE HIGH COURT OF GUJARAT AT AHMEDABADR/TAX APPEAL NO. 79 of 2020 ================================================================ THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus GANDHINAGAR URBAN DEVELOPMENT AUTHORITY ================================================================ Appearance:MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE J.B.PARDIWALAandHONOURABLE MR. JUSTICE BHARGAV D. KARIA Date : 25/02/2020 ORAL ORDER (PER : HONOURABLE MR.JUSTICE J.B.PARDIWALA) 1.The Revenue is in appeal against the order passed by the Income Tax Appellate Tribunal, Ahmedabad, Bench 'C', Ahmedabad dated 23[rd] July, 2019 passed in the ITA No.3621/Ahd/2015 for the A.Y.2011-12. 2.The Revenue has proposed the following questions of law for the consideration of this Court; “(A) Whether on the facts and circumstances of the case and in law, the Hon'ble Tribunal was justified in allowing the benefit of exemptions u/s.11 & 12 of the Act without considering the fact that the assessee is involved in widespread commercial activities in nature of business and the activity of the assessee is covered under the provisions of section 2(15) of the Act and thus exemption u/s.11 & 12 of the Act is not allowable to the assessee? (B)Whether on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal is justified in allowing benefit of section 11 of the Act relying on the decisions of Hon. High Court in the case of Ahmedabad Urban Development Authority vs. ACIT (Exemption) in TA No.423 of 2016 and CIT vs. Gujarat Industrial Development Corporation reported in (2017) 83 Taxmann.com 366 (Gujarat) subject matter of further appeal before the Hon. Supreme Court which are pending? (C )Whether on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal in allowing benefit of section 11 of the Act relying on the decision of Coordinate Bench of Ahmedabad in ITA No.2751/Ahd/2014 which has not been accepted, though further appeal was not preferred on account of the quantum of tax involved?” 3.All the three aforesaid questions of law, as proposed by the Revenue, are squarely covered by a decision of this Court in the case of Ahmedabad Urban Development Authority vs. ACIT (Exemption), 2017 396 ITR 323 (Guj.). 4.In view of the aforesaid, none of the questions of law, as proposed by the Revenue, are res integra. 5.In the result, the appeal fails and is hereby dismissed. (J. B. PARDIWALA, J) (BHARGAV D. KARIA, J) Vahid