Uttarakhand Civil Aviation Development Authority Vs CIT (Exemption) (ITAT Dehradun)
Income Tax Appellate Tribunal (ITAT), Dehradun, has recently ruled in favor of the Uttarakhand Civil Aviation Development Authority (UCADA) in their appeal against an order passed by the Commissioner of Income Tax (Exemption), Lucknow. The Commissioner had previously rejected UCADA’s application for registration under Section 12AB(1)(1)(ii)(B) of the Income-tax Act, 1961, which would have granted them tax exemption.
The core issue in the appeal revolved around whether UCADA’s objectives qualified as charitable activities under the Income-tax Act. UCADA, established by an order from the Government of Uttarakhand’s Directorate of Civil Aviation, stated its primary goals as developing tourism-related infrastructure, promoting tourism, constructing helipads, and conducting rescue operations during medical emergencies and natural disasters within the state.
Previously, UCADA’s application for registration under Section 12A of the Act had been rejected in 2016. This rejection was challenged before the ITAT’s Lucknow Bench, which, in an order dated March 15, 2018 (ITA No. 383/Luck/2016), had allowed UCADA’s appeal and directed the Commissioner of Income Tax (Exemption) to grant the registration. However, the registration was reportedly not issued. Subsequently, UCADA filed a fresh application under Section 12AB in March 2022, which was again rejected by the Commissioner, primarily on the grounds that UCADA had failed to establish the charitable nature of its activities.
The ITAT Dehradun, after reviewing the case, noted that the Commissioner’s rejection was largely due to UCADA’s alleged failure to respond to queries, leading to doubts about the genuineness of their charitable activities. However, the Tribunal emphasized its previous order from the Lucknow Bench in 2018, which had already categorically established that UCADA’s primary objectives were charitable and predominantly served the public. In light of this earlier ruling by a coordinate bench, the ITAT Dehradun set aside the Commissioner’s order. The Tribunal directed the Commissioner to grant UCADA a fresh opportunity for a hearing and to duly consider the observations and conclusions made in the Lucknow Bench’s order of March 15, 2018, before passing a new order. Consequently, the appeal filed by UCADA was allowed for statistical purposes. The order was pronounced in open court on February 19, 2025.
FULL TEXT OF THE ORDER OF ITAT DEHRADUN
