INCOME TAX ACT, 1961

Section 2(15) Section 12AA(1)(aa)

Charitable trust - Canceallation of registration under section 12AA(1)(aa) - Reason, insertion of proviso to section 2(15) - Object of assessee falling within the limit of any other object of general public utility with no profit motive

Assessee was a statutory body constituted under Karnataka Urban Development Authorities Act, 1987, for the purpose of carrying out the object of the said Act, which is to provide for establishment of Urban Development Authorities for planned development of major and important urban areas in the State. The assessee was constituted for urban areas of Hubli-Dharwad as a planning authority before High Court.Held: Assessee was a statutory authority constituted under Karnataka Urban Development Authorities Act, 1987. In the circumstances, despite insertion of proviso to section 2(15) assessee was entitled to continue certificate of registration under section 12A, as objects of assessee fell within the limit of any other object of general public utility, its activity was not of a commercial nature for the purpose of earning profit, but being statutory body its objects were to ensure orderly development of urban areas of Hubli-Dharwad. Accordingly, registration under section 12A could not be cancelled on the basis of insertion of proviso to clause (15) of section 2.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

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