2017 (2) TMI 1110

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....s. Anil Katiyar, Adv. For the Respondent : Mrs Sarla Chandra, Adv. ORDER Heard learned counsel for the parties. The issue that arises for our consideration in this matter is as to whether respondent, namely, Vidarbh Irrigation Department Corporation, is a local authority within the meaning of Section 10(20A) of the Income Tax Act,1961 (hereinafter referred to as "the Act"). Section ....

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....4, and was interpreted in the following manner: "Any income falling within the ambit of the said clause would automatically slip out of the exigibility under the Income-tax Act. The clause pertains to any income of an authority constituted by or under any enacted law. This first limb of the clause is squarely available to the Corporation as it has been constituted under the Gujarat Act. ....

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....he impugned judgment has referred to the aforesaid judgment and observed that since the Income Tax Appellate Tribunal did not consider the issue in the light of the provisions of the Vidarbha Irrigation Development Corporation Act,1997, under which the respondent-assessee has been constituted, as well as the provisions of Maharashtra Irrigation Act,1976 and Bombay Canal Rules,1934, the High Court ....

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.... planning, development or improvement of cities, towns and villages or for both, income of such authority is exempted from tax under Section 10(20A) of the IT Act. It was, therefore, necessary for the appellate Tribunal to consider the issue in the light of the provisions of the VIDC Act, Maharashtra Irrigation Act, 1976 and Bombay Canal Rules,1934. However, the conclusion arrived at by the appell....