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2003 (5) TMI 51 - JHARKHAND HIGH COURTObviously, the Explanation to section 10(20) of the Income-tax Act was introduced by the Finance Act, 2002, clarifying which are local authorities and excluding from them, corporations or authorities like the petitioner herein and the deletion of section 10(20A) of the Income-tax Act clearly indicates that the mischief sought to be remedied was to keep out corporations or authorities like the petitioner created under various enactments from claiming exclusion of their income under the Income-tax Act and to bring them within the purview of the Income-tax Act. If we apply the Heydons's case [1584] 3 Co Rep 7a rule it is clear that the intention in bringing in these amendments by the Finance Act of 2002 is to bring within taxation, the income of an authority constituted under any law enacted for the purpose of satisfying the need of housing accommodation or for the purpose of planning, development or improvement of the cities, towns and villages, like the petitioner-authority. Since we are not in a position to accept the contention of learned counsel for the petitioner that the income of the petitioner is exempt under article 289(1) of the Constitution of India, we are constrained to hold that the notification annexure P-1, is perfectly valid and cannot be successfully challenged on the ground urged by the petitioner-authority – Petition dismissed.
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