https://www.taxtmi.com/caselaws?id=183443 Income derived by a local authority from supplying water outside its municipal limits was held not exempt under Section 4(3)(iii) of the Income-tax Act, 1922, because the activity was treated as trade or business rather than a protected municipal function. The court noted that the supply was made for consideration, with continuity and method, to Government and others beyond the local authority's jurisdiction, and that ownership of the water works did not extend the Corporation's territorial limits. As the income arose from outside-area commercial supply, it was liable to income-tax and the claimed exemption failed. en-us Tue, 23 Mar 1948 00:00:00 +0530 Thu, 09 Jun 2016 17:57:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183443 Income derived by a local authority from supplying water outside its municipal limits was held not exempt under Section 4(3)(iii) of the Income-tax Act, 1922, because the activity was treated as trade or business rather than a protected municipal function. The court noted that the supply was made for consideration, with continuity and method, to Government and others beyond the local authority's jurisdiction, and that ownership of the water works did not extend the Corporation's territorial limits. As the income arose from outside-area commercial supply, it was liable to income-tax and the claimed exemption failed. Case-Laws Income Tax Tue, 23 Mar 1948 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183443