Exemption u/s. 11 cannot be denied to town planning authority as fees charges doesn’t generate profit

Magadi Planning Authority Vs ITO (ITAT Bangalore) ITAT Bangalore held that denial of exemptions under section 11 and 12 of the Income Tax Act is unjustified as fees are charged by town planning authority to ensure accountability and fund public welfare initiatives, not to generate profit. Facts- The assessee is a town planning authority created under the Karnataka Town and Country Planning Act, 1961. The assessee claims to be a local authority responsible for the administration, development, and monitoring of affairs in rural Magadi town, located in the Ramanagar district of Karnataka. AO note...