Case Law Details
Surat Urban Development Authority (SUDA) Vs DCIT (ITAT Ahmedabad)
The issue under consideration is that whether the activities carried out by Surat Urban Development Authority are considered as Charitable Activities and hence entitled to the exemption under section 11 of the Income Tax Act or not?
The assessee is a regulatory body created by State Government u/s 22 of Gujarat Town Planning and Urban Development Act, 1976 for proper development of specified area in the state which is supposed to be ensured by the State. It was submitted that the assessee is just like a government body functioning for and on behalf of State Government. The very purpose of the above Act is to ensure the development of various areas of the state in a phased and planned manner.
It was further submitted that as per Section 2(15) of the 1961, an assessee is considered as a charitable institution if it is involved in any of the following purposes, namely Relief of the poor, Medical, Preservation of environment (including watersheds, forests and wildlife), Preservation of monuments or places or objects of artistic or historic interest, Advancement of any other object of general public utility.
The Surat Urban Development Authority (SUDA) is the umbrella organization of Gujarat The Authority takes over the new infrastructure developments, residential projects for people falling in low and middle income group. Since the assessee trust is engaged in providing easily affordable residence to low and middle income group, hence the assessee comes under the purview of “Relief to Poor” within the definition of Charitable Purpose.
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