2010 (5) TMI 868

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed off by this consolidated order for the sake of convenience. 3. The common grounds raised in both the appeals are as under:- 1) The learned Assessing Officer has erred in law and fact of the case by treating the appellant as AOP than local Authority and thus assessing the income on the basis of AOP, but no where in the orders the Assessing Officer has substantiated on what ground the appellant is to be treated as AOP. The orders of the learned Assessing Officer is contrary to the law, equity and justice and facts and material on record, devoid of jurisdiction arbitrary based on conjectures and surmise. Since as per explanation as inserted in the Income Tax Act w.e.f. 1.4.2003, the appellant is in control and management of Local fund an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... have heard the rival contentions and perused the records. Under the provisions of section 10(20) of the Act, the income of a local authority is exempt from tax. The Finance Act 2002 w.e.f. 1.4.2003 had inserted an Explanation u/s 10(20) of the Act defining 'local authority' which reads as under:- Explanation.-For the purposes of this clause, the expression "local authority" means- (i) Panchayat as referred to in clause (d) of article 243 of the Constitution; or (ii) Municipality as referred to in clause (e) of article 243P of the Constitution; or (iii) Municipal Committee and District Board, legally entitled to, or entrusted by the Government with, the control or management of a Municipal or local fund; or (iv) Cantonment Board a....