The Department sought a clarification of the judgment in ACIT (E) v. Ahmedabad Urban Development Authority (2022) 449 ITR 1(SC) contending the conclusions recorded in the judgment and those in paragraphs 253H and 254 of the judgment precluded it from dealing with the assessments of parties before the court and the dismissal of the Department’s appeals precluded an examination of the merits for these assessees in future, as well, the court clarified that the reference to application of the law declared by the court’s judgment had to be understood in the context that it applied for the assessment years in question, which were before the court and were decided ; wherever the appeals were decided against the Department, they were to be treated as final. However, the reference to future application had to be understood in the context that for the assessment years which the court was not called upon to decide, the concerned authorities would apply the law declared in the judgment, having regard to the facts of each such assessment year.
ACIT(E) v. Ahmedabad Urban Development Authority (2022) 449 ITR 389 / (2023) 290 Taxman 137 (SC) Editorial : Clarification, ACIT(E) v. Ahmedabad Urban Development Authority(2022) 449 ITR 1 (SC)
S. 2(15) : Charitable purpose-Exemption-Object of general public utility-Clarification-Law declared by court to be applied for assessment years in question, which were before court and were decided-Appeals decided against department, matter to be treated as final-For assessment years not before Court, authorities to apply law declared in judgment, having regard to facts of each year. [S. 10(20A), 10(23C), 10(46), 11, 11(4), 11(4A), 12, 12A, 12AA, 13(8), 143(3)]