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TMI Blog2012 (9) TMI 1103X X X X Extracts X X X X X X X X Extracts X X X X ..... king at the object of the appellant-company it cannot be treated as an authority under article 12 of the Constitution of India. Since they are not discharging the functions of housing accommodation and for the purpose of planning and development of the Cities, towns and villages, the appellant does not fall under the purview of Section 10(20A) of the Act. Hence, they are not entitled to claim exemption. - Decided against assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ies under the instructions of the Government, whose entire operations is under the Government control. Hence they are eligible for exemption under Section 10(20A) of the Act. The Assessing Authority after considering the contention of the appellant declined to grant exemption under Section 10(20A) of the Act. The Assessing Authority held that the appellant-company is not an authority constituted in India by or under any law and the appellant-company is a Corporation incorporated under the Companies Act. Further, the Assessing Authority held that the appellant has not fulfilled the provisions contained under Section 10(20A) of the Act to avail exemption and they are not dealing in housing accommodations for the purpose of planning, developme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assistance and marketing the products of the Small Industries. The appellant has effected development of villages and towns after setting up of industrial estates and carrying out the objects for its incorporation. It is a local authority within the meaning of article 12 of the Constitution of India and entitled for exemption under Section 10(20A) of the Act. Further the learned counsel contended that the Hon'ble Supreme Court in Gujarat Industrial Development Corpn. v. CIT [1997] 227 ITR 414, the Hon'ble Supreme Court held that the Gujarath Industrial Development Corporation is entitled for benefit under Section 10(20A) of the Act. He submits that the appellant-corporation is also standing on the similar footing and sought for exte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r considering the following substantial questions of the law: "(i) Whether the appellant which is a company incorporated under the Companies Act, 1956 and a Government Company as defined in Section 617 of the Companies Act, having 100% shareholding in the Corporation, falls within the definition of "authority" as per Section 10(20A) of the Income Tax Act? (ii) Whether the Tribunal having accepted that the appellant was an authority, can deny the benefit u/s. 10(20A) of the Act only on the ground that it was not constituted under an enactment and whether for the purpose of Section 10(20A), a constitution under the provisions of Companies Act was not sufficient to satisfy the constitution under an enactment when the require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of Industrial Estates and their management and development; 2.Purchase of equipment required by the Government schemes of the Small Scale Industries Department and their development; 3.Development of Emporia for the sale of small scale industries products as also products of craft cooperative Societies and of those entrepreneurs who wish to avail themselves of the services of the Emporia; 4. Receive and account for the block loans sanctioned the State by the Centre and for issue of loans to small scale industries to the extent of ₹ 10,000/- and place sums as are necessary for purposes of loans about ₹ 10,000/- with the State Finance Corporation for assistance to small industries; 5. Run and operate raw materials de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both" 12. The reading of the above said provision makes it very clear that to claim exemption, the aforesaid clause has to be satisfied. The person must be an authority and the said authority should be constituted in India by order under any law, such law should be enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages or for both. In the instant case, the object and function of incorpora ..... X X X X Extracts X X X X X X X X Extracts X X X X
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