Case Law Details
Status of the Local Authority cannot be denied for the reason that members of the assessee-Mandi Parishad not elected
Local Authority Status cannot be denied for non election of members of assessee-Mandi Parishad
RELEVANT PARAGRAPH
15. We have heard both the parties at length and carefully gone through the materials available on record. In the instant case, the controversy to be resolved is whether assessee was a Local Authority for the year under consideration and as such was eligible for exemption of income u/s. 10(20) of the Act or not. Section 10 of the Act deals with the income which are not to be included in computing total income of previous year of any person and clause (20) of section 10 deals with the income of a local authority, It is not in dispute that assessee being a Mandi Parishad was established in accordance with the provisions contained in Uttar Pradesh Krishi Utpadan Mandi Adhiniyam, 1964. To decide the issue whether assessee was a local or not for the year under consideration, it is relevant to discuss the provisions of section 10(20) which read as under:-
“10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included –
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