Charitable Status of Urban Development Authorities

The Gujarat High Court, in its order dated 1 July 2026, dismissed the Revenue's appeal against Ahmedabad Urban Development Authority (AUDA) and upheld its entitlement to registration under Section 12AA of the Income-tax Act. 

The Court held that the controversy already stood concluded by the Supreme Court's decision in the assessee's own case and reiterated that statutory authorities performing public utility functions do not lose their charitable character merely because they earn incidental surpluses while discharging their statutory responsibilities.