State Govt Undertaking Employee cannot be treated as State Govt Employee for Gratuity & LTA Exemption

Shivaram Gopal Awate Vs ITO (ITAT Pune) The issue that arises for consideration is whether an employee of the State Government Undertaking can be treated as employee of State Government. The issue is no longer res integra, as the Hon’ble Supreme Court in the case of Indian Institute of Science vs. DCIT, 446 ITR 418 (SC) held that though the State Government Undertaking may be considered as a State instrumentality within the definition of article 12 of the Constitution of India, the same cannot be treated as Central or State Government, consequently the employees of such undertakings cannot b...