Assessee is  a town planning authority created under Karnataka Town and Country Planning Act, 1961. It undertook public welfare and developmental activities such as town planning, water conservation, and lake rejuvenation for town and its adjacent areas. The  assessee operated under stringent Government regulation.  All its receipts and expenditures were deposited into Town Planning Authority Fund, and budget was subject to approval by State Government. Assessee’s accounts were audited annually by Government agencies, and any surplus or assets, upon dissolution, reverted to State Government-These factors unequivocally demonstrated non-commercial character of assessee’s activities. Functions of assessee aligned with definition of charitable purposes under section 2(15) as they were oriented towards advancement of public utility without any profit motive, and  would be entitled to exemption under sections 11 and 12 of the Act.   (AY.  2014-15 to 2017-18)