Assistant Commissioner of Income Tax (Exemptions) vs Ahmedabad Urban Development Authority

REPORTABLE

IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION

MISCELLANEOUS APPLICATION NO. 1849 OF 2022 IN CIVIL APPEAL NO. 21762 OF 2017

ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS) ...APPELLANT(S)

VERSUS

AHMEDABAD URBAN DEVELOPMENT AUTHORITY ...RESPONDENT(S)

ORDER

S. RAVINDRA BHAT, J.

1. By this application, the revenue seeks a clarification of the judgment dated

19.10.2022, delivered by this court, in CA 21762/2017 and connected appeals.

The clarification sought is that para 254 of the judgment should be such as to

“enable the Revenue to redo the assessments in accordance with the above

judgments for the past and examine the eligibility on a yearly basis for the future

and thus render justice.”

2. This court, by the judgment in question, had considered and pronounced Signature Not Verified Digitally signed by Neetu Khajuria upon the interpretation of Section 2 (15) of the Income Tax Act, 1961, in relation Date: 2022.11.03 16:49:48 IST Reason:

to charitable trusts which engage in activities that further objects of general public

utility. The activities and cases of various kinds of charities, trusts and 2

organizations, including statutory corporations and bodies, regulatory bodies,

non- statutory regulatory bodies, trade organizations and bodies, sports bodies

and organizations, trusts, etc were considered by the court, and dealt with in the

judgment. Para 253 recorded the court’s summary of conclusions in relation to

each such trust, charity or organization.

3. It was urged on behalf of the revenue, that the clarification it seeks is

necessary, because in Para 253 H and in Para 254, it has been precluded from

examining the facts and assessing the concerned assessment years, in relation to

the assesses in these appeals. It was urged that the conclusions recorded in the

judgment and those in the said two paragraphs, preclude it from dealing with the

assessments of parties before this court and, furthermore, the dismissal of the

revenue’s appeals will preclude an examination of the merits for these assesses

in future, as well.

4. A plain reading of the conclusions recorded in Para 253 (A)(B)(C) (D) and

(E) would disclose that this court consciously recorded its findings, with the intent

of finally deciding the issues, for various organizations- in relation to the

assessment years in question, - whereas in Para 253 (F), the court remitted the

matter for examination and orders by the assessing officer. Similarly, the

conclusion in Para 253 G, was conclusive with respect to the claim of private

trusts; the appeals were dismissed. These conclusions are accurately reflected in

the final, operative directions in Para 254. In Para 254 (i) to (iv), the conclusions

recorded are against the revenue. However, in Para 254 (v), (vi), (vii) and (vii),

the conclusions, are in favour of the revenue.

3

5. The reference to application of the law declared by this court’s judgment,

therefore, has to be understood in the context, which is that they apply for the

assessment years in question, which were before this court and were decided;

wherever the appeals were decided against the revenue, they are to be treated as

final. However, the reference to future application has to be understood in this

context, which is that for the assessment years which this court was not called

upon to decide, the concerned authorities will apply the law declared in the

judgment, having regard to the facts of each such assessment year. In view of this

discussion, no further clarification is necessary or called for.

6. The application M.A. No. 1849 of 2022 is disposed of in the above terms.

………..………........................................CJI. [UDAY UMESH LALIT]

……….……….…........................................J. [S. RAVINDRA BHAT]

………..…………........................................J. [PAMIDIGHANTAM SRI NARASIMHA]

New Delhi, November 03, 2022.