https://www.taxtmi.com/caselaws?id=471869 Income of a statutory urban improvement trust may be exempt from Union taxation under Article 289(1) where the trust operates as an instrumentality of the State. State-controlled constitution and functions, exercise of municipal powers, public governmental character, and transfer of assets and liabilities to a municipal body on dissolution support that characterisation. Although statutory corporations ordinarily have separate legal personality and their income does not automatically constitute State income, the trust's activities were treated as governmental rather than independent commercial operations. Article 289(2) does not apply where those activities are not a trade or business carried on by or on behalf of the State. en-us Mon, 11 Aug 2025 00:00:00 +0530 Tue, 22 Sep 2026 08:17:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471869 Income of a statutory urban improvement trust may be exempt from Union taxation under Article 289(1) where the trust operates as an instrumentality of the State. State-controlled constitution and functions, exercise of municipal powers, public governmental character, and transfer of assets and liabilities to a municipal body on dissolution support that characterisation. Although statutory corporations ordinarily have separate legal personality and their income does not automatically constitute State income, the trust's activities were treated as governmental rather than independent commercial operations. Article 289(2) does not apply where those activities are not a trade or business carried on by or on behalf of the State. Case-Laws Income Tax Mon, 11 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471869