Income from property under trust held wholly for charitable purpose is allowable as exemption u/s 11

Ghaziabad Development Authority Vs JCIT (ITAT Delhi)

ITAT Delhi held that income derived from the property held under the trust is wholly for a charitable purpose and hence exemption under section 11 of the Income Tax Act is allowable.

Facts- The assessee is engaged in development work constituted under Uttar Pradesh Urban Planning & Development Act, 1973. The assessee has been claiming the benefits of provisions of Section 10(20A). Section 10(20A) was omitted by Finance Act, 2002. The assessee filed a return of income on 31.12.2010 declaring a total income of Rs.4,24,09,340/-.

The assessment u/s 143(3) was completed on 31.12.2010 determining a total income of Rs.4,24,09,340/. Further, the notice u/s 148 has been issued to the assessee on 14.07.2014 and the assessment has been completed on 21.03.2016.

Mainly, the assessee challenged reassessment proceedings stating that the reassessment proceedings have been initiated merely based on audit objection without application of mind and without recording his own reasons. The assessee has further challenged the assessment on account of administrative jurisdiction contending that proceedings initiated by DIT-Exemption have been completed by JCIT-Exemption without jurisdiction.

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