Local Authority's Trade Income Tax-Exempt; District Board's Mela Qualifies

The High Court of Allahabad held that income of a local authority from trade or business within its jurisdiction is tax-exempt under section 10(20) of the Income Tax Act, 1961. The District Board's activities qualified for this exemption, as it organized a mela and exhibition. The court ruled in favor of the assessee, awarding costs of Rs. 200.

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The High Court of Allahabad ruled that income of a local authority from a trade or business within its jurisdiction is exempt from tax under section 10(20) of the Income Tax Act, 1961. The District Board was found to be organizing a mela and exhibition, entitling it to the tax exemption. The court ruled in favor of the assessee and awarded costs of Rs. 200.

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