https://www.taxtmi.com/caselaws?id=368908 The Supreme Court held that the Explanation inserted in section 10(20) of the Income-tax Act creates an exhaustive definition of "local authority" limited to panchayats, municipalities, municipal committees or district boards, and cantonment boards. A trust constituted under the Rajasthan Urban Improvement Act, 1959, which performs urban development and improvement functions with limited municipal powers, does not become a municipality or municipal committee merely because some municipal functions are entrusted to it. The Court further noted that the withdrawal of the specific exemption for planning, development or improvement authorities under section 10(20A) could not be bypassed by expanding section 10(20), and that the General Clauses Act definition could not override the specific statutory definition. The trust was therefore held not entitled to exemption. en-us Fri, 12 Oct 2018 00:00:00 +0530 Mon, 10 Dec 2018 15:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=368908 The Supreme Court held that the Explanation inserted in section 10(20) of the Income-tax Act creates an exhaustive definition of "local authority" limited to panchayats, municipalities, municipal committees or district boards, and cantonment boards. A trust constituted under the Rajasthan Urban Improvement Act, 1959, which performs urban development and improvement functions with limited municipal powers, does not become a municipality or municipal committee merely because some municipal functions are entrusted to it. The Court further noted that the withdrawal of the specific exemption for planning, development or improvement authorities under section 10(20A) could not be bypassed by expanding section 10(20), and that the General Clauses Act definition could not override the specific statutory definition. The trust was therefore held not entitled to exemption. Case-Laws Income Tax Fri, 12 Oct 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=368908