The assessee is a public sector undertaking working under Ministry of Railways in the Government of India and registered under section 617 of the Companies Act 1956. The assessee is engaged in developing plans and implementation of rail infrastructure projects. The Assessing Officer denied the exemption on the ground that registration u/s. 12A of the Act was cancelled and receipt of the assessee was more than 25 lakhs. The CIT(A) deleted the addition following the order in Mumbai Railway Vikas Nigam Ltd. ITA No. 1057/Mum/2014 and ITA No. 2626/Mum/2014 dt.3-8-2016. Revenue preferred an appeal before the Tribunal. Dismissing the appeal of the revenue the Tribunal held that there is no requirement that the assessee must be trust for availing the exemption. Followed the order of earlier year. (AY.2012-13)
Dy. CIT(E) v. Mumbai Railway Vikas Nigam Ltd. (2021) 87 ITR 1 (Mum.)(Trib.)
S. 11 : Property held for charitable purposes-Registered under Companies Act, 1956-No profit motive-Collection of fees or cess-No requirement that the applicant must be trust-Denial of exemption is held to be not justified. [S. 2(15), 12AA(3) Companies Act, 1956, S. 25, 617]