DCIT Vs Hapur Pilukhuwa Development Authority (ITAT Delhi)
Delhi ITAT dismissed Revenue’s appeal & upheld CIT(A)’s order granting exemption u/s 11 to the Authority.
Assessee, a statutory body constituted under the U.P. Urban Planning & Development Act, 1973, filed NIL income claiming exemption u/s 11. AO denied exemption treating its activities of land development & property sale as commercial u/s 2(15) proviso. CIT(A) allowed the claim relying on earlier years’ orders.
On appeal, ITAT noted that the identical issue had been decided in Assessee’s favour for earlier years (A.Ys. 2009-10 to 2014-15) in ITA No. 4691/Del/2024 (order dated 25-06-2025) & earlier coordinate bench orders, all approved by the Allahabad High Court. The Tribunal reiterated that statutory development authorities—engaged in planned urban development & providing housing infrastructure—are charitable institutions within s.2(15), not driven by profit motive.
Citing precedents in Meerut Development Authority, Kanpur Development Authority, Moradabad Development Authority, & Yamuna Expressway Industrial Development Authority, & applying the principle of consistency (Radhasoami Satsang v. CIT 193 ITR 321 SC), the Tribunal held that the Assessee’s activities remain within the charitable ambit & the proviso to s.2(15) was not attracted.
Accordingly, the ITAT upheld CIT(A)’s order, confirming that the Authority is entitled to exemption u/s 11, & dismissed the Revenue’s appeal.
