Hyderabad Metropotitan Development Authority, Sec'bad, Hyderabad V. Addl. CIT, Range-10, Hyderabad

ITA 459/HYD/2012

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5962 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 14-06-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 21-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B NARASIMHA SHARMA DEPT
• Assessee Lawyers: S RAMA RAO
• Section: 12AA; 6; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SPECIAL BENCH AT HYDERABAD BEFORE JUSTICE (RETD.)DEV DARSHAN SUD, PRESIDENT, SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBER S.NO. ITA NO. AY APPELLANT RESPONDENT 1 459/HYD/2012 2008-09 HYDERABAD METROPOLITAN DEVELOPMENT AUTHORITY, SECUNDERABAD ADDL. CIT, RANGE 10, HYDERABAD 2 980/HYD/10 2003-04 HYDERABAD URBAN DEVELOPMENT AUTHORITY, SEC.BAD. JCIT, RANGE 10, HYDERABAD. 3 1008/H/10 2003-04 ACIT, CIRCLE 10(1), HYDERABAD M/S HUDA, SECUNDERABAD. 4 CO 75/H/10 (IN ITA NO.1008/HYD/10) 2003-04 M/S HUDA, SECUNDERABAD ACIT, CIRCLE 10(1), HYDERABAD. 5 360/H/11 2004-05 ACIT, CIRCLE 10(1), HYDERABAD. M/S HMDA, SECBAD 6 399/H/11 2004-05 M/S HYDERABAD URBAN DEVELOPMENT AUTHORITY, HYDERABAD. DCIT, CIRCLE 10(1), HYDERABAD. 7 911/H/11 2005-06 ACIT, CIRCLE 10(1), HYDERABAD. M/S HMDA, SECBAD 8 912/H/11 2006-07 ACIT, CIRCLE 10(1), HYDERABAD. M/S HMDA, SECBAD 9 913/H/11 2007-08 ACIT, CIRCLE 10(1), HYDERABAD. M/S HMDA, SECBAD 10 970/H/11 2005-06 HYDERABAD URBAN DEVELOPMENT AUTHORITY, HYDERABAD. ACIT, CIRCLE 10(1), HYDERABAD. 11 971/H/11 2006-07 HYDERABAD URBAN DEVELOPMENT AUTHORITY, HYDERABAD. ACIT, CIRCLE 10(1), HYDERABAD 12 1029/H/11 2007-08 HYDERABAD URBAN DEVELOPMENT AUTHORITY, HYDERABAD. ADDL. CIT, RANGE 10, HYDERABAD 13 1193/H/11 2003-04 ACIT, CIRCLE 10(1), HYDERABAD. CYBERABAD DEVELOPMENT AUTHORITY, SECUNDERABAD. 14 545/H/12 2003-04 BUDDHA POORNIMA PROJECT AUTHORITY, HYDERABAD. ACIT, CIRCLE 10(1), HYDERABAD. ASSESSEE PAN AAALH0058D 2 ITA NO. 459/H/12 AND OTHERS HUDA/HMDA AND OTHERS ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SHRI B. NARASIMHA SHARMA, STANDING COUNSEL FOR DEPT. DATE OF HEARING : 22-12-2016 DATE OF PRONOUNCEMENT : 23-12-2016 O R D E R PER PRESIDENT: SPECIAL BENCH WAS CONSTITUTED TO DETERMINE THE FOLL OWING QUESTION WHICH WAS REFERRED TO : WHETHER, IN THE FACTS AND CIRCUMSTANCES OF THE CASE , HMDA CAN BE HELD TO BE ENGAGED IN THE ACTIVITY OF SALE O F LAND AS AN AGENT OF THE STATE GOVT.? AND IF SO, WHETHER INCOME DERIVED FROM SALE OF LAND CAN BE TREATED AS INCOME OF STATE GOVT., HENCE, NOT CHARGEABLE TO INCOME TAX IN VIEW OF ARTI CLE 289 OF THE CONSTITUTION OF INDIA? 2. WE FIND THAT THIS TRIBUNAL VIDE ITS ORDER IN ITA NO. 1633/HYD/2012 DATED 17.2.2016 HAD REMANDED THE ISSU E OF GRANT OF REGISTRATION U/S 12AA OF THE ACT ON MERITS OF THE C ASE. IN FACT THERE ARE OTHER ISSUES THAT WERE RAISED BY THE ASSESSEE I N ITS GROUNDS OF APPEAL IN ITA NO. 459/HYD/2012 AND IN OTHER CASES L ISTED SUPRA , WHICH ARE CONSEQUENTIAL IN NATURE PURSUANT TO THE D ISPOSAL OF THE BASIC ISSUE OF GRANT OF REGISTRATION U/S 12AA OF TH E ACT , WHICH GOES TO THE ROOT OF THE MATTER. 3. WE DO NOT INTEND TO ENTERTAIN THE AFORESAID QUES TION FOR THE REASON THAT THE HONBLE SUPREME COURT VIDE ITS ORDE R DATED 26/10/2015 IN CIVIL APPEAL NO. 8904 OF 2015, HAS RE MITTED THE MATTER 3 ITA NO. 459/H/12 AND OTHERS HUDA/HMDA AND OTHERS TO THE TRIBUNAL, WHICH IN TURN, VIDE ITS ORDER DATE D 17/02/2016 IN ITA NO. 1633/HYD/2012 HAS REMANDED THE CASE TO DIT(E). WE WERE INFORMED THAT HEARING HAS BEEN COMPLETED BY THE DIT (E) AND ORDER IS AWAITED. ONCE THIS ISSUE OF GRANT OF REGISTRATIO N U/S 12AA OF THE ACT IS DECIDED BY THE DIT(EXEMPTIONS), THE OTHER ISSUES THAT WERE RAISED IN THE GROUNDS IN ITA NO. 459/HYD/2012 AND OTHERS W OULD HAVE TO BE ADDRESSED BY THE REGULAR DIVISION BENCH OF THIS TRI BUNAL. 4. HENCE THE QUESTION RAISED BEFORE THE SPECIAL BEN CH IS DISPOSED OFF ACCORDINGLY AND WE DIRECT THE DIVISION BENCH OF THIS TRIBUNAL TO ADJUDICATE THE OTHER GROUNDS RAISED IN ALL THESE AP PEALS AFTER THE RECEIPT OF ORDER ON THE ISSUE OF GRANT OF REGISTRAT ION U/S 12AA OF THE ACT BY THE CIT(EXEMPTIONS). THE QUESTION REFERRED BE FORE THE SPECIAL BENCH IS DISPOSED OFF ACCORDINGLY. ORDER IS PRONOUNCED IN OPEN COURT ON 23 RD DECEMBER, 2016. SD/- SD/- SD/- M. BALAGANESH ACCOUNTANT MEMBER D. MANMOHAN VICE PRESIDENT JUSTICE (RETD.) DEV DARSHAN SUD PRESIDENT HYDERABAD, DATED 23 RD DECEMBER, 2016 KV 4 ITA NO. 459/H/12 AND OTHERS HUDA/HMDA AND OTHERS COPY TO:- 1. HYDERABAD METROPOLITAN DEVELOPMENT AUTHORITY, SECUNDERABAD C/O SHRI S. RAMA RAO, ADVOCATE, FLAT NO. 102, SHRIYAS ELEGANCE, 3-6-643, STREET NO. 9, HIMAYAT NAGAR, HYDERABAD 500 029. 2.HYDERABAD URBAN DEVELOPMENT AUTHORITY, SECBAD. 3.M/S HUDA, SECUNDERABAD 4. M/S HYDERABAD URBAN DEVELOPMENT AUTHORITY, HYDERABAD. 5. BUDDHA POORNIMA PROJECT AUTHORITY, HYDERABAD. 6. ACIT, CIRCLE 10(1), HYDERABAD. 7. JCIT, RANGE 10, HYDERABAD. 8. DIRECTOR OF INCOME TAX(EXEMPTIONS), HYDERABAD 9. CIT(A) VI, HYDERABAD 10. CIT V, HYDERABAD 11. DR, ITAT B, HYDERABAD 12. GUARD FILE