Yamuna Expressway Authority-If charitable Institution us 12AA or not to be decided by Allahabad High Court, Questions of Law framed

Yamuna Expressway Authority-If charitable Institution us 12AA or not to be decided by Allahabad High Court, Questions of Law framed

ABCAUS Case Law Citation:
1054 (2016) (11) HC

Important Case under consideration:
Sri Ramtanu Co-operative Society v. State of Maharashtra [1970(3) SCC ]
Indian Trade Promotion Organization v. Director General of Income-tax(Exemption) & others [(2015)-371 ITR 333]

Brief Facts of the Case:
The Hon’ble Allahabad High Court has admitted an appeal against the order of the ITAT in allowing the registration of M/S Yamuna Expressway Industrial Development Authority u/s 12AA of as charitable institution. The following questions of Law have been framed by the Hon’ble Court

(i) Whether on the basis of the facts of the case and the law applicable, the Tribunal was justified in allowing the appeal and issuing a direction to the authority concerned to register the respondent as being entitled to exemption under the provisions of Section 12-AA of the Income Tax Act, 1961 and read with Section 2 (15) thereof?

(ii) Whether the findings recorded by the Tribunal to the effect that the respondent-assessee was not carrying out any activity of profit and it’s predominant object of welfare of public at large are correct or not? 

(iii) Whether the Income Tax Appellate Tribunal at New Delhi had the jurisdiction to entertain an appeal from the order of the Commissioner of Income Tax (Exemptions), Lucknow in exercise of power under Section 12-AA of the Income Tax Act, 1961? 

The Court was informed that the Judgment of the Delhi High Court in  the case of Indian Trade Promotion Organization relied upon by the respondent authority has been challenged by Special Leave to Appeal and is pending before the Apex Court 

The case is listed for hearing in the month of December, 2016

Note about Yamuna Expressway Industrial Development Authority:
The Government of Uttar Pradesh (GoUP) for implementing the Yamuna Expressway Project and allied development in the region, had constituted the Taj Expressway Industrial Development Authority (now Yamuna Expressway Industrial Development Authority) on  24th April, 2001, under Uttar Pradesh Industrial Area Development Act, 1976 (U.P. Act No.6 of 1976).

The main responsibilities of the erstwhile TEA (now Yamuna Expressway Industrial Development Authority), inter alia, included:

• Execution of Yamuna Expressway
• Acquisition of land for construction of Expressway and area development
• Preparation of Zonal plan/Master plan for planned development along the Expressway
• Development of drainage, feeder roads, electrification and other facilities in the area

Approx. 334 villages of District Gautam Budh Nagar, Bulandshahar , Aligarh, Mahamaya Nagar (Hatras), Mathura and Agra have been Notified under Yamuna Expressway Industrial Development Authority vide various Notifications of Government of Uttar Pradesh.